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Of course you're right, but I'm not sure if the government: a) doesn't understand the nuance, or: b) purposefully throws out bitcoin baby with crypto bathwater.
I'd bet that Joe Biden's governments has no understanding about the implications of such a move whatsoever.
It's like "hey all these crypto companies are going down, lets solve the problem by killing more of them", Nevermind charging the real fraudsters like SBF and clawing money back from FTX US.
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