This is a simple attack on liberalism and freedom.
I don't know about liberalism, but it's definitely an attack on people's freedom to choose. Funny enough, in another thread I wrote this:
The only problem is that lawmakers, law enforcement, and a multitude of government agencies don't give a single shit about logical arguments if it means that they might be seen to be twiddling their thumbs when a disaster like FTX (or take your pick from the many crypto has seen) happens.
All of those entities I just referenced are extremely reactionary and always have been, so as to OP's question....it's anyone's guess if a crackdown could happen.
And wouldn't you know, here we have an example of such a knee-jerk reaction. I haven't read the details of this proposal, but I seriously don't think the government (which is taxing us to death and producing massive inflation) should be telling people how to invest their money. Saying they're trying to protect people from the risks of crypto is a fucking joke.
Hear that, New York?
A fucking joke.