Yes, a regulated centralized exchange is valuable for on and off ramp. All they would need to do is process user transactions, take a small fee, and not gamble with user funds. Regulators could do audits and keep consumers protected.

But regulators have failed to provide clear framework for exchanges in the US[1], so most CEXes are running off shore.

[1] https://www.cnbc.com/2022/11/11/op-ed-crypto-markets-need-re...