Isn't tether a way to redeem crypto that evades KYC (know your customer)? So if I am shady person getting paid in bitcoin, I can essentially bank in crypto and avoid the volatility of crypto assets without the institution I work with needing to check me out. It tether goes away (and presumably all other stable coins with them) wouldn't the utility of crypto be reduced for anyone avoiding the traditional banking system?

I don't pretend to know. I am asking if that might be the case.