BTC however cannot be regulated so for that reason alone the government's want nothing to do with it. They hire Powers have to be able to control the masses and Bitcoin will not allow that.
The US gov't can regulate BTC by making it illegal to conduct transactions with it. (a exaggerated example) The SEC already does attempt to loosely regulate it, and fiascos like the FTX debacle adds fuel to the regulatory fire.
I do agree that no gov't can eliminate it, but U.S., as well as most other governments, need to be able to manipulate their currencies for various political reasons. (Not a good thing, but gov'ts need this control knob). For example, the U.S. debt will eventually be too much a percentage of GDP, and the gov't will want to have the ability to devalue the currency in a controlled fashion (I know, hubris), to pay back the bond holders with cheaper dollars. That way the gov't can say that everyone got paid, while still stiffing the bondholders.
So there biggest hurdle I see for BTC is that none of the central banks want them to work. BTC is a direct threat to their monetary control.
