China and USA both are having different reasons to restrict the use of cryptocurrency, let's take China they never want to give such thing called decentralisation even in their current technically evolved era they only allowed wechat for paying via QR codes and any other apps are banned so basically they want complete control and tracking history. Whereas USA is different and more democratic so suppression will not work their so the government is trying to generate as much as revenue from they can.
Trying to generate as much income from crypto as you can is a smart approach to it. I mean think about being able to tax people automatically for each trade, and then being able to store that tax in crypto that you took from people. That means you are going to be so rich as a government, the treasury will be filled with crypto, mainly bitcoin but other stuff as well and you would be holding that since nations do not need cash quickly, and they will be able to use that as a leverage power.
Like how any government holding gold means something, like they can back that fiat with gold, this would be same but instead of gold we would have bitcoin instead. I personally hope that every single nation moves to something like that for our future.