That is to be expected from the G7 panel. Lacking regulation on cryptocurrency makes them think that it is risky and needs to be regulated by all means. The high price volatility of cryptocurrency will always have the same feed back from these group so what they are saying is about cryptocurrency is true.
My interpretation is that the G7 feels threatened by stablecoins. Libra brought the issue to the forefront, but the ballooning of Tether in market size also seems like a pressing issue for them.
As long as Bitcoin is seen primarily as a speculative vehicle rather than a ubiquitous medium of exchange, they don't seem overly concerned about it.
I do not think they are threatened, its that they see it as potential for economic growth but also have risk of being exploited and manipulated thus the need for proper law and regulation for it is needed. They are discussing things in an economic manner with the application law above it so it is natural to identify risk and regulation according to their standards.