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Of course, NFTs can be used for money laundering as well but art is presumably already used for that purpose.Modern art is primarily driven for the purpose of money laundering.
https://edition.cnn.com/2020/07/29/business/art-money-launde...
NFTs are just a new way to conduct the same money laundering schemes which, loopholes and the lack of regulation, are easier to hide and exploit.
This recent change adopted by the IRS is just a way to address that loophole, and lo and behold it's spun as a deadly attack on the purposefulness of the entire technology.