The US is super reluctant to shut down anything that looks like a business. It's a capitalist country, they love people going out and making money, especially in finance.

But one thing the US is regulating is money laundering - the US sanctions regime is super-important. So FinCEN in the US and FATF internationally are tightening traceability on the crypto system, wherever it interfaces to actual money. 'Cos they might not be able to stop bitcoin trades, but the interface to actual money is entirely in their purview.

The one thing the US couldn't tolerate about Libra was that Facebook was trying to mess with the money, at systemic scale - and doing so incompetently, which was probably a worse failing.

Regulators and legislators had Libra's number immediately - they knew this species of dumbassery, and they knew that these bitcoin-VC bros were absolutely stupid and arrogant enough to do another 2008 financial crisis all by themselves.