According to conservative logic, citizens (and non-citizens) accustomed to feeding on the entitlement teat throw violent tantrums when that teat is withdrawn in times of economic contraction.
Many of them had become part of the military-financial-industrial complex making large multiples more income by rent seeking in the private sector or sucking off the public teat in a comfy government job.
FFIs should all just get on board and be compliant little institutions, even though they all hate this thing called FATCA. For the FCC, there is money to be made off the regulatory teat, if you just consult with the them, your problems will be solved, for a price, of course.