If they wanted to squash it they should have done it much earlier (if it was possible at all and wouldn't have just caused Streisand Effect).

Now you have congressmen with laser eyes on 100k bitcoin twitter profile pics, the head of SEC taught classes about blockchain at MIT; it is way too late.

The smart thing is to embrace it, the complete opposite of the Chinese government course of action. You set back the entire nation by not embracing innovation.