Ofcourse legal bodies like IMF would be scared of that, if something becomes too big it turn into dictatorship. People trusting crypto will be huge backlash for their power so it kinda look natural they will hate a country legalizing it.
They utilize the moment when the market bearish to create more bad bad news and make people who starts to join crypto doubt their decision and taking back all their investment because crypto is a threat for some rich people. There are 2 sides of rich people in the world right now, one who will get profits when crypto developed and adopted anywhere and one is the opposite, as an investors we should careful about this war and don't get loss because of the impact of the dispute