Regulators around the globe have recognised cryptocurrencies as an asset class. They are tightening their regulatory screws and writing papers about it (mostly about stablecoins).
I recently came across this paper (PDF for download here) from the Fed (Jeffery Zhang) and Yale University (Gary B. Gorton). Fiat-backed stablecoins are obviously getting the most attention of central banks due to their close ties to fiat money and the fact that they are a direct competitor to a potential CBDC.
The paper is pretty extensive, but the bottom line is that they have realised that they cannot control or regulate the assets, so they will regulate all of the service providers involved (so-called VASPs).
I will ignore the question of if this is bullish or bearish for the space right now. The more interesting question for me currently is how the decentralised finance space will look like in five to ten years. Can it truly be called „decentralised“ when we use centralised money pegged to a stablecoin? This is a topic for another time and a much more extensive report.