It appears regulators don’t care about the functionality or reliability of blockchains, especially as some of the loudest opponents of crypto are in favor of central bank digital currencies – a type of digital currency issued by a central bank. The animosity feels more related to the decentralized nature of crypto – the ability to take fiat currency and exchange it for another asset of value, without the need for a central body (central banks, regulators, politicians, conventional banks, etc.).
Source: https://www.coindesk.com/markets/2023/04/05/crypto-investors-why-you-need-to-understand-layer-1-protocols/?utm_medium=referral&utm_source=rss&utm_campaign=headlines