Fear of unknown is what causes the panic. Its human nature to try and attack what they cannot understand or what is alien to them. Right now Cyrpto currencies are alien to them and they are scared so the natural way to react is to attack them, ban them. Eventually they will have to come to terms with it just the way it has happened throughout the human history.
With crypto currencies the power is reduced and those in power do not like to give away power easily. they will try everything to hold on to it. We have seen wars for far less so brace yourself and wait it out.