So it is regulatory arbitrage. I think many of the critics never contested that crypto is good for doing crime. The critics just also think that either those crimes should continue to be prevented via the financial system or the financial system should be deregulated for all without a crypto backdoor.

A Money Market Fund gives you interest if you are able to access it.

This is kind of a pattern:

1. There is some regulation that is inefficient ( e.g. taxi medallions, KYC, copyright protection ...)

2. New technology comes about which allows startups to claim that they have invented a new area that should be regulated differently

3. Turns out (2) is not true and new technology can easily be mapped to existing regulation but it would look bad for the regulator to take away the punchbowl

4. There is some down-turn (bubble pops) and the regulator takes away the punchbowl OR investors have accumulated so much money/power that they corrupt the government to have new rules for their businesses