Yup. NY state is a bit retarded state, but more of this regulations is about to come and corner crypto trading platforms . It is all about taxes and money, Iran and North Korea are just an excuse.
Two ways to look at this imho. One one hand, NY is the financial hub that has enormous control and influence on where money flows. Like almost enough to say all money. Technically, crypto wants to be here to get everybody on board.
On the other hand, the legacy financial landscape is what crypto is here to disrupt/improve so if we can just build up outside their walls, they will be forced to meet us on our turf which is technically what we would want.
The reality is that neither crypto or big money are ready for this transition.