There is a difference between what the crypto community needs vs what the government thinks it needs. One of the goals of crypto is lack of regulation like you

There is a difference between what the crypto community needs vs what the government thinks it needs. One of the goals of crypto is lack of regulation like you identified, but that doesn't mean the government doesn't want to regulate it any less. There are all sorts of industries that would be ecstatic if avoiding regulation was as simple as opting out.