Thing is - traditional finance can be just as risky, but most average folks don't get into it.
Crypto is more accessible, so the exact same risks exist but are more visible to politicians as upset constituents and more useful platforms to shout about.
Crypto does have some more high-risk activities that in the traditional financial sphere are well-regulated (distributed loans for example, or Binance with it's "lets give leverage to everyone" stuff) which they should focus on but which is less useful for grandstanding politicians, and which also might focus the attention on some risky behaviours in traditional finance (and traditional finance are too politically important to piss off)
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