People always talk about sanctions, but unless you're sanctioning Cuba or North Korea, sanctions can be as damaging to the countries doing the sanctioning. Fully sanctioning China would essentially mean cutting ourselves off from the world's top manufacturer, which would hurt the U.S. way more than China now that their domestic economy is in full swing.
Not to mention that most if not will American-based multinationals would never go along with it.
A crypto company turns out to be shady? Who would have thought!