I notice there are 48 comments on this document, and yet none of them are even visible. Looks like they are withholding comments for "review" or whatever that means.
It's standard protocol. No way the US government is going to let unmoderated comments be posted live to one of their websites. They should be posted once they've been checked for inappropriate content.
and anonymity is being stripped away due to KYC.
And because the majority of people complete KYC without a second though. Bitcoin wasn't designed so you can just comply with the same old fiat rules and regulations you've been complying with your entire life. The whole point of bitcoin is to remove the ability of faceless third parties to control you.
Why doesn't the government just create its own digital asset and let Bitcoin continue to function in our ecosystem?
Because bitcoin takes power away from the government and gives it to the people, and the government will never accept that.