I don't even necessarily think a 'war on crypto' is needed. The problem is that crypto seems to function as a get out of jail free card for very straightforward financial crimes: you just do the financial crime, but apply a thin veneer of 'but with crypto' and the legal system is utterly bamboozled.
Crypto's problem is that when the law is updated to deal with these stunts, it's suddenly just a crappy version of the existing financial system.
I completely agree that crypto is being used as an end-run (if you'll pardon the expression) around the existing financial oligopoly, whose regulatory burden is paid for by the monopoly rents extracted by the government-endorsed players. The problem is that criminal laws aren't being maximally applied against banks, so instances like this do give the appearance of 'unfairness'.
Crypto's problem is that when the law is updated to deal with these stunts, it's suddenly just a crappy version of the existing financial system.