Reserves- what the crypto nerd doesn't get

Seems a lot of people here have no experience investing in traditional markets nor understand how bank deposits work. So I hear Kraken's getting sued (along w/ binance & coinbase) for (possibly) not having 100% of customer's funds on hand (though Kraken was voluntarily doing audits). Anyway, while the crypto nerds are cheering Mr. Burns, sorry Mr. Gensler to sue, what's really happening is the SEC is trying to close all onramps to crypto. Meanwhile, you're over there going, "what if they only have 50% of customer funds?". Sounds terrible I know. Did you know the bank you have money in is required to have fuck-all of your funds? So 100% for crypto, 0% for banks, and you think it's the crypto exchanges that are crooked? The irony is crypto enthusiasts cheering on an upcoming ETF and "yay regulations are coming" w/ no idea that the regulations on wall street lead to market makers naked shorting the fuck out of companies, failure to deliver, buying off exchanges and selling on exchanges (thus driving the price down). It's complete fuckery over on wall street, but yeah, let's get those regulations on and popping b/c that'll straighten the market out. At least in crypto, the price represents true supply and demand which is more than I can say about the stock market. Price discovery in traditional markets was fucked in the ass w/ the help of the SEC long ago.