This is a real can of worms you've opened. Stablecoins were meant to offer a more reliable alternative to traditional fiat, but it seems we're trading one set of problems for another. The whole idea of crypto is supposed to be about decentralization and freedom, but if Tether and USDC start behaving like banks, what's the point, right? It's a stark reminder that we're still in the wild west of finance, and it's risky out here.
Stable coins perform their function relatively well, before they were created many of those that wanted to deal with cryptocurrencies found themselves in a difficult position once they wanted to sell their coins and send their profits back to their bank accounts, and it was not rare to hear stories of people getting their bank accounts blocked due to the transactions they received, so stable coins were a good way to avoid that scenario, but if governments begin to take legal action against them then their reason to exist will disappear and people will find themselves facing those problems again.