It's a simple equation. The more flexible a market is, the more liquid it will be. The CFTC was established in 1975 to monitor the 82 different futures bought and sold at eight different U. S. exchanges and to insure that a majority of speculators lose money in an orderly, reasonable, and efficient manner. The cost of arbitraging regulations has done down so much that it is hard to know how to stuff the genie back into the bottle. I don't know what I can do, but I do sit on the Armed Services Committee and maybe I can do something about the CFTC with a B-52 Bomber.
Bankers prefer to be left alone to do what they want.
If the regulators get too heavy handed, a lot of banks may simply decamp to Paris or Frankfurt or Singapore or Liberia, or wherever will offer them good telephone connections, decent restaurants and, above all, relaxed regulation.