It's time to make strict regulations to protect bitcoin and cryptocurrencies, the bitcoin market cap is already large and widely used for fraud, if top exchanges agree to make regulations, it is certain that investors will get guarantees so that bitcoin prices can be more stable.
I don't think it has something to do with the price of Bitcoin especially the stability because sure even if top exchanges or will combine, still, the government have the choice about regulations, they have nothing to do about it, and they are just following it.
With the recent dump of $40,000. For me it is normal because it is not only Bitcoin, look at other markets like stock markets, they are affected too. For me now, Bitcoin is became more natural when it terms to price compare on previous years.