Unfortunately there have been so many crypto scams over the years (CEX - centralized crypto exchanges though!) that banks are eager to use that history to discredit DEX (de-centralized crypto with self-custodial wallets). The banks have a vested interest in pretending they're the same thing, and they're probably afraid of people at large realizing there is a way to hold and exchange currency out of their control.
Honestly I'd be surprised if major governments (lobbied/controlled by bank interests to a great extent) don't try to outlaw DEX completely if it becomes too popular though.