This post is going to just be speculation and some FUD on my part.
If I were the fed, and were looking to implement crypto regulation that I knew the masses would be furious about, I would want to time that regulation so that it has the least possible negative impact.
If you implement draconian crypto regulation in the middle of a bull market, or near the top of one, people are going to be furious that you are causing the value of their investments to go down.
If you wait until a catastrophic bear market, people are already going to be furious over being "rugpulled" (lol) by the cryptos they have invested in. I would imagine after losing thousands in crypto investments, many people, especially new investors would be happy to see harsh regulation on the asset that just burned them, and would probably welcome it.
Bottom line: If the fed were going to implement harsh and unpopular crypto regulation, wouldn't a bear market be the perfect time to do it? Doesn't necessarily have to be this specific bear market, but is that when we should expect regulation, during the bottom part of a cycle?
