I'm not sure any amount of regulation would really solve the problem. At the end of the day someone is going to be able to see the private keys. And that's all

I'm not sure any amount of regulation would really solve the problem. At the end of the day someone is going to be able to see the private keys. And that's all they have to do—see it. Anyone with access to a private key can steal it at any time. It's almost the same as being able to rob a bank just by being able to look in the vault. You just need a peak, and escaping with the pot is as easy as pretty a button.