A trade war misstep? China is vacating crypto battlefield to US banks

Why is China forsaking cryptocurrencies at the same time that legacy U.S. banks, long wary of crypto, appear to be discovering its virtues?
Source: A trade war misstep? China is vacating crypto battlefield to US banks (https://cointelegraph.com/news/a-trade-war-misstep-china-is-vacating-crypto-battlefield-to-us-banks)
Would appreciate your opinion about this