Some of us know that crypto must be full of fraud because there’s so much fraud in traditional markets, despite regulation and oversight that crypto doesn’t have at all.
For the common wo/man there is more oversight in open ledgers as compared to backdoor deals. You can of course trade on some shady sites registered in the Cayman Islands, or you can use a decentralized exchange where there can't be backdoor deals. In theory crypto would be a regulator's dream, since everything can be automated and remotely audited. However, for the very reason that it would make fraud harder to hide, there are going to be a lot of rich and powerful people against it. Firms like Citadel are happy and comfortable with the status quo.
I don’t think this theory of what financial regulators want matches the things they actually care about or considers that they already have access to the ledgers, or at least most of the important ledgers, even if the public doesn’t. I disagree with your opinion about levels of oversight.
