At least one reason is that a big chunk of crypto value is being driven by wealth flight out of the PRC. A lot of the dollars propping up BTC's valuations repr

At least one reason is that a big chunk of crypto value is being driven by wealth flight out of the PRC. A lot of the dollars propping up BTC's valuations represent trade deficit dollars that would otherwise be leverage for a plausibly hostile government. Surely the feds are aware of the scale of money laundering being done in the cryptocurrency world, but I'm guessing they'd prefer to see that being laundered by western criminals than leveraged by China.