If Wall Street knew how insecure Ethereum is and how its easy to make mistakes running smart contracts in it, they will drop it like dog shit. Remember the DAO or the Parity "bug"? Yeah, the developers assured everyone they were safe. One was hacked forcing Vitalik Buterin to change the transactions and the other one was incompetency.
Things will improve, I believe. With the cash injection into eth, and a determination of the team behind Ethereum, I believe, the security issues will be sorted. Besides, literally more than a half of the cryptomarket runs on Ethereum - it's not that bad.
Is it really for security purposes, or they just want to get a cut from it? If security issues for sure Devs can handle that easily, but the government is making on its way to somehow take part of the cryptocurrency, IMO.