Are they going to shut down banks and ban cash in the US since the US dollar is the most used currency in terms of money laundering?
Those curious, paranoid or with unique threat models. The same ones who distrust banks and use only cash. (They, like anyone using a mixer, should maintain records in case they fall under suspicion.)
Using a blockchain that's designed to work this way, and then claiming to need tools capable of laundering money in order to avoid that outcome, doesn't strike me as a particularly good argument in favor of either of those things.
“It’s a good thing that the people that designed ________ are dead because they’d have a heart attack if they saw what I use it for!”