While distilling is heavily regulated at the Federal, state, and local levels, the Feds did not ban it due to concerns over fire safety. Rather, a chief reason is "to protect the revenue," which, in the case of Federal excise taxes, is substantial. ($13.50 per proof gallon; a proof gallon is 1 gallon at 50% ABV.)
The Feds don't really concern themselves with fire safety. Rather, just as you desire, that's regulated at the state and local level. The TTB outlook is that you have to satisfy the local and state levels as far as fire safety is concerned.