With fiat money, you can legally retrieve anonymous cash from an ATM if you choose so, without suspicion. Or likewise, you can reveal your identity for a transaction when appropriate. This should be the same with crypto.
Let's see it this way: surveillance is needed and those who seek privacy may indeed conceal illegal activities. But I think we can agree not everyone is a criminal and if I have a right to privacy with cash, I should have the same right with cryptocurrencies.
Paper cash is "analog" and local, crypto is digital and global. It's the equivalent of buying DVD copies off someone at a market stall vs a torrent site.
Except with crypto you have the government after you directly for tax avoidance, money laundering and the prospect of $GovIssuedCurrency being sidelined. With torrents it's the MPAA sending lawyers after you.
My feeling is if you can't do it anonymously with cash the government probably has a reason to be interested. What should happen is all businesses must be forced to accept cash transactions, I don't like then trend towards cash-free shops.
Let's see it this way: surveillance is needed and those who seek privacy may indeed conceal illegal activities. But I think we can agree not everyone is a criminal and if I have a right to privacy with cash, I should have the same right with cryptocurrencies.