I don't actually care about this topic at all, but people should do a better job of defending their positions.
You added that most people would be better off with intermediated financial transactions which is probably true for most day to day transactions, but the TFA proposal brings up the question of whether everyone should be forced to use an intermediary.
For example, just using single-use addresses would be considered suspicious, probably just because it complicates basic taint analysis. Yet that's a fundamental component of privacy, and to do otherwise is akin to how Venmo lets people see your own transaction history (a very odd feature btw).
Well, given that they're responding to this:
>I think it's actually pretty clear that almost all people are not capable of secure and reliable self-custody and would be better off with an intermediary. We're not keeping our fiat currency in a safe under our bed after all.
Why would you not expect people to argue in the style you presented them?
You're regulating an "untraceable" utterance of a string of data.
Pragmatically it's worse than trying to stop fentanyl, which is already impossible, and even trying to stop it has just made the gangs that much more powerful because they now control whole small nation-state tier light-infantry militias funded by black-market profits induced from trying to ban it.
I honestly don't see any way to effectively ban cryptocurrency that has net positive utility. "Yay we caught some criminals, all it cost us was a dystopia!"