Also, KYC and AML are mandatory the moment you actually interact with the regular US banking system or USD at all. So any place where you can buy crypto or sell it is going to do KYC and AML on you, including asking uncomfortable questions if your behavior looks suspicious.
Legislation requiring a backdoor in e2e encryption, such as WhatsApp, is also considered a positive by most people even now, but wait after it's been in place for 10 years, it will be as universally unquestioned as KYC or AML policies.
I don't think that's an argument against KYC and AML, personally.
Yes, it's more not an argument, merely an invitation to consider the parallels.
It is of course possible to embrace both e2e encryption and KYC.