So they want to shut down stablecoins. This is the beginning of the fight and stablecoins are the easy target. But soon they will move onto shutting down delegated proof of stake chains and anything else that is operated by a few known parties.
So when they introduce their own CBDCs and their own governmental smart contract platforms they have no competition.
What will banning stablecoins do?
It will show that any centralized asset backed crypto is a non-starter (sorry to all the gold bugs with dreams of gold backed crypto). It will show the world that bitcoins decentralized model is the only way the world can have a sound digital currency.
In other words it will prove exactly why bitcoin exists in the first place and definitively demonstrate exactly why bitcoin matters.
Bitcoin by design can not be shut down because of some arbitrary protectionist regulation.
Contrary to all the FUD, a ban on even just a few different stablecoins will increase bitcoins appeal and value proposition dramatically.