I strongly disagree, it is NOT the government's responsibility to step in and clean up people's bad investments. That is exactly the sort of thinking that enabled the 2008 financial crash and the big bank bailouts. If you invest, it is taking a business risk, like any other business activity. If your business goes bust, then that is your responsibility. This is one of the fundamental ideas behind cryptocurrencies, is for people to take responsibility for themselves and their own finances rather than have middle men such as banks and governments meddle in our affairs and ultimately rob us.

Regulations only bring the middle men back into the equation. Crypto was created to cut them out!