Why do you think it's a bad thing that token transaction on the Ethereum blockchain are public? I really like that transparancy where you could follow the money in detail.
Public transactions are unacceptable in regulated markets. Think about the consequences of moving millions on an exchange wallet. Even without selling a single asset, just by broadcasting such a tx on an open ledger you can manipulate the market and induce panic selling in a way that is completely illegal.
Yeah, last year many times big transactions caused dump or pump. And even it caused fake transactions. Some whales send big amounts to exchanges or withdraw from exchanges just to manipulate the market. And that can't be on a regulated market.
Well, okay. I haven't thought about this. This is definitely a downside of the public transactions. Big player can easily manipulate the market only with transactions to an exchange for example, even if they don't have any intention to sell.