What "war on crypto"? Cryptocurrency bros started out with lots of theories how they are the new gold standard and how much politicians (and the "privately owned" Fed) will hate them. But the general reaction at least in democratic countries was... mildly bemused interest?
They shut down the third-wave c-list-celebrity-endorsed token scams, yes. And when it became possible to do 6-figure money transfers with limited traceability and across borders, they forced exchanges to follow KYC laws. To the surprise of absolutely no one except people saying "taxation is theft" and thinking they are very clever, laws do apply online.
But a "war" it wasn't. The failure of cryptocurrencies to have any meaningful impact on the real world not measurable in cubic feet and degrees Celsius is to be found in its inability to be actually useful. Because the problems it was trying to solve never were problems: nobody needs a zero-trust payment solution because people do trust the banking system, to some degree. Nobody wants a currency completely separate from politics because the decisions of democratically legitimised institutions filled with PhDs tend to be at least slightly better than the arbitrarily set parameters of some algorithm that cannot be changed, or the feudalism of leaving all power in the hands of whoever has the most GPUs.