The main value props of Bitcoin are freedom from seigniorage and censorship. You cannot engage in commerce inside white markets without following laws and regulations, so you lose censorship resistance for any use inside them.

If the law now says you cannot directly use Bitcoin inside white markets without some intermediary or custodian that issues "bitcoin backed" tokens for you, you now lose any protection from seigniorage on white markets. Public adoption of Bitcoin is already headed in a custodial and tradfi direction.

So, yes maybe you're right, but what good is all that adoption when it's missing the two things that make Bitcoin what it is?

The only real lasting and unstoppable use case is outside white markets and there is another rising star on that stage that isn't Bitcoin