So at the end of the day it is not all about Bitcoin but rather about releasing their own controlled stablecoin. So what is there for the Bitcoinist to celebrate? First, all I see is a plan that is only beneficial to the government. Creating regulation on cryptocurrency might go southward if they implement tight regulations that include KYC and many privacy-invading demands due to the established new set of law about cryptocurrency.
Actually, I believe this is the cost for the government adopting Bitcoin or cryptocurrency. All engagement in cryptocurrency should pass through a centralized system where every transaction can be monitored by the government.
No matter how much Bitcoin friendly a politician is, as soon as he hold elected office of a government he has to follow the government policies. What we have seen so far regarding government accepting Bitcoin is government allowing Bitcoin transactions that they can monitor, government never allow the p2p bitcoin transactions which they can't monitor. We saw Mr. Trump very friendly towards crypto before he was elected as US president but as soon as he was elected he is following the stance of US government on crypto.