And as we know this system has been working perfectly.

No deposits were lost, the FDIC even extended the insurance to be above the pre agreed limit.

Certainly not perfectly, but compared to the chaos that is the world of crypto, positively mundane and peaceful.

Regulate crypto exchanges then. They're just banks in disguise.

Why do you want crypto regulated? I thought the goal of crypto is to free you from regulation and government control.

If crypto is regulated, your crypto can be seized, frozen, held, and so on.. Why regulate it?

The state already has the power to seize, freeze, or hold crypto. That has nothing to do with regulation.

Yeah, but the Wild West nature of crypto is its selling point, maybe even its raison d'etre. What would be the point in regulated crypto? It won't do anything that the traditional banking system doesn't already do.

Well your basic assumption was already wrong, what else do you want me to tell you? That people don't personally care whether or not cyrpto's selling point remains viable? as if anyone should

I want cryptocurrency exchanges regulated. Not cryptocurrencies themselves. They are distinct. Cryptocurrencies are perfectly good technology, exchanges are fractional reserve banks in disguise.