BUSD, a fully regulated stablecoin, was "capped" (no new minting) by NYDFS at $23b. Now at $5b market cap.
Since then, USDT has seen tremendous growth.
We could ban email because it is used for phishing attacks but we don't. We could ban dollars because it is used for money laundering but we don't. If you think crypto facilitates too much crime, what you are likely saying is that you don't think the underlying use cases are worth the externalities. More data below.