There are also lots of cases where blatantly illegal activity is gotten away with right out in the open because law enforcement don't even know to look, or how

There are also lots of cases where blatantly illegal activity is gotten away with right out in the open because law enforcement don't even know to look, or how to look. Ponzi schemes, pump and dump shitcoins, fake bids on nfts, and so on. We don't need new laws, we need educated enforcement. If I steal a million dollar painting, a million dollar lottery ticket, a million dollars cash, or a million dollars in bitcoin, the laws are there to protect the victim and require repayment and jail time and so on. NFTs have some particularly egregious examples of scams and schemes by A-list famous people, and nothing gets done because everyone involved in the transactions are frothing at the mouth crazy over "web 3, omg." As far as smart contracts go, basic control logic has to be built and a library of modules made available and a system cultivated by which users and developers can test and validate everything. Reversible transactions and failsafe mechanisms have to be the foundation of any investment so that when errors inevitably occur, someone in charge can unfuck things. A board of directors could be given individual keys in a multi-signature scheme, or so on. Once or twice a month we're seeing crypto thefts in the 7+ figures and it's always because of obscure flaws in the code that could be avoided by developing on tested, verifiable, and validated code. That means a level of rigor only currently seen in international banking, nasa missions, and so on. The big problem with crypto investing right now is "I wrote this smart contract last weekend at a hackathon, let's invest millions of dollars!" Decentralization doesn't mean everything has to or should be decentralized - sometimes its enough that the overarching system is not under the thumb of an arbitrary authority. Centralized entities within the bitcoin or ethereun ecosystem will be the first crypto banks and exchanges, and you'll eventually be able to code legal requirements directly into contracts (and vice versa, once the ruling class starts to include people educated in cryptocurrency.)