Right well your points make a lot more sense when they revolve around the military industrial complex. No need to muddy the waters by talking about Wall Street at all. It will be interesting to see how far this will escalate, as you could have just as easily applied all this logic to torrenting and pirating IP back in the day and obviously would have ended up mostly wrong. Back in those days people were saying the same shit: oh they are going to put EVERYONE INTO PRISON. They didn't. They didn't even jail 0.01% of the violators.

Crypto is higher stakes

There's more risk and more reward on both sides. The prison industrial complex can only crack down so hard before they start stepping on the toes of the rich people that control the system. You largely don't seem to respect the nuance here and instead opt to go full nuclear and expect the absolute worst possible outcome, which is never how things actually work out in the end.

So what happened to Pirate Bay?
It's still around and people use it and nobody gives a shit.
Pretty decent chance the same thing happens to crypto assets.