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The regime doesn’t want people saying or thinking things they aren’t being currently told to say and think. The regime is technically not allowed to use the legal system directly to punish people for this quasi-crime but is very happy to ruin everything else in same pursuit. So why should a protocol for p2p financial transactions the regime doesn’t control be allowed to exist?

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Who said anything about p2p? Crypto is poorly-suited for microtransactions due to its inefficiency.

"The regime" has nothing to do with it; "the regime" has already effectively absorbed cryptocurrency. Coinbase is listed on NASDAQ, and all the major cryptocurrencies have zero privacy, allowing the powers that be to see everything that happens on the public ledgers.

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