The government is trying to bite off more than they can chew. The government should properly regulate the banks first before trying to regulate Crypto. The banks are out of control, not Crypto.

Banks should be the main focus of politicians and lawmakers instead of Crypto. The SEC and the FED should stop obsessing about Crypto and start regulating banks properly. Trying to regulate Crypto while banks are out of control is a stupid idea. It is honestly way overdue for banks to face the consequences.

As per UN reports, up to 5% of the global GDP, equal to approximately $4 Trillion is laundered each year. Banks play a HUGE role in money laundering and dirty money schemes, making false reports and committing corruption. The vast majority of money laundering schemes are directly or indirectly connected to banks.

This is not unknown either. Politicians and citizens know banks are out of control, but the bribes from banks called "lobbying" only keep it down. We all know what happened after the Panama and Pandora papers... close to nothing except a few weeks of media coverage.

This brings us to Crypto. The highest money laundering estimate I've found is no more than $4 Billion a year, while the average is close to $2 Billion per year. This means Crypto is responsible for roughly 0.05-0.1% of the amount of money laundered each year. Yet governments are absolutely fixated on trying to "control" Crypto while ignoring the trillions being laundered and stolen by banks each year.

TLDR: The government should properly regulate the banks first before trying to regulate Crypto. The banks are out of control, not Crypto!