I am surprised that this proposal had an impact on the market because CZ is partially responsible behind the market downfall when he made his claims in twitter and then walking away from the FTX deal, even though i personally feel that it was the right decision because it is a bigger mess to deal with .

The fact remains BTCitcoin was created to move away from the traditional system where the bankers mess up and the government always rescue them and the same system is proposed now. Projects mess up the funds and instead of government coming for the rescue they are planning to create a rescue fund .