> Are all crimes, right? Banks will take your consumer money (provider management does get more complicated) for gambling and porn these days

Not necessarily. For example, PayPal has recently introduced "acceptable use policy" where they can freeze your account without you violating the law. Banks also have done the same for being "racist", "sexist", "anti-vaxx" etc. All of those things are perfectly legal in the US. So your assertion that only illegal activities require use of crypto is false.

And that's before we get to the fact that just because something is "illegal" doesn't mean it's good to have this banned. Pretty sure the ongoing Iranian protests are illegal.