"That could push the industry toward consolidation"
Based on history this is not a possibility but a certainty.
The larger players - who grew because of limited regulations - will start supporting stricter regulation and compliance structures in order to increase the barrier of entry with the excuse of "Oh we learned our lesson, you are right". The hypocrisy is crazy but it makes sense from a capitalistic perspective.
That is part of the ‚first mover advantage‘. Sometimes operating and experimenting in grey zones before they become regulated.
The European and especially German approach of regulating pre-emptive might be more fair, but apparently it also stifles innovation, as we can observe. Almost no significant players from Europe and Germany.