You will see more fraud in the Crypto and NFT space before it is regulated

I would argue that regulation directs the flow of mass adoption into a digital economy by giving the illusion of the "rule of law" but really revealing the governmental power of control [=freezing accounts] of the on-ramps of fiat money into the trustless currencies and smart-contracts of Web3.0. This would only get murkier as the government introduces national fiscal policies and regulations needed to implement it's Central Banking Digital Currency (the digital dollar that gives the Fed and other gov't agencies the ability to track where each official dollar you make gets spent).

With mass adoption you have a broader spectrum of humanity and all of the inequities that come from such varied life experiences. You also get more people who are highly motivated to do the social engineering that gets the outcome that they desire (money, notoriety, influence, etc.) - to manipulate and sell themselves [or fake possession] in exchange for an interaction of value (authentic item, feeling good, etc.).

I'm not talking the "Metaverse" hype, but instead the "common" person's experience - paying for your commute transportation (using CBDC likely on your augmented reality travel goggles), getting your meal &/or beverage (using a regional open source DAG cryptocurrency most likely), performing your hours of work (paid in some company's proprietary blockchain token that will have some global market value - but is tokenized profit-sharing to motivate workers), engaging in recreation activities (that are probably paid for with the city's DAO cryptocurrency that maintains public spaces), and back to your SmartContract-amenities residence (that adds your gov't Universal Income housing allowance to a percentage of interest on your work tokens). Think of the numerous "Wild West" versions of the dollar we had in the past and then "although history doesn't repeat itself, but often rhymes" I can envision no reasonable set of laws that could force people to just use one currency when there would be so many globalized options.