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This statement can only mean that the author does not understand how blockchains work.
I didn't follow. The article isn't about Blockchain tech.
Ok, I'll try to explain then.
There is no crypto without a blockchain, and blockchains live on the internet. Btw the projects that are worth in this environment are decentralized.
Federal courts in the US are passing laws and these laws are valid only in the US. They don't threaten the survival of the "crypto industry" cause they live on the internet, not in the US. It just makes it harder to create a legit project in the US, or if you are a user you will need a VPN to access some sites that are not available in the country you live in.
This is why there is binance.com (for almost everywhere, except US) and binance.us (only for the US). This article fails to mention this difference so claiming that:
makes it clear to me that the author has no understanding of how crypto works. That's my good faith take on this article.
The industry doesn't actually care about the block chain, they care about fleecing people who transfer crypto to and from real dollars. And the government has regulations for how that kind of interaction is supposed to be handled that they apparently aren't following.