As new crypto laws and regulations come into force, more CEXs may reduce or cease operations in certain markets.

That could trigger a cascade of liquidity leaving the system. Market makers will still be legal, but those relying on market manipulation, wash trading or fake volume will find it much harder to operate. Proper licensing, transparent bookkeeping, compliance and reporting will become essential.
DeFi has a real opportunity here,but also a major risk.
If liquidity disappears from centralised exchanges without moving on-chain, many ecosystems could face heavy tokens selling pressure without liquidity .
The next phase of DeFi will not be easy. Chains with real utility, deep on-chain liquidity and sustainable tokenomics will survive. The rest may struggle badly.