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Isn't America shooting itself in the leg by ruining crypto businesses?

I would say most definitely it is. The US has (had) the chance to be the crypto-hub. Now, since they are screwing it up, this will likely end up elsewhere.

Another country will likely grab the opportunity.

Without a doubt. We are going to see some other countries step up.

Lets keep on the wacth.

many countries will jump on this. Their loss.

That is certainly true.

I don't blame them. It's tough when the regulations are starting to be less crypto friendly and the government has started to crackdown.