Honestly I don't believe in this whole "government hates bitcoin" thing. People say that without any evidence whatsoever. Nobody in government has ever demonstrated hostility to bitcoin, in fact the new regulations seem to imply they are perfectly fine with it as long as you don't launder money and you remember to pay your capital gains.

They really don't have any reason to want to kill bitcoin. They make the same amount in taxes either way, since you have to pay capital gains, and you have to pay them in your country's currency.

They could actually generate quite a bit more revenue, in fact, if they jumped into the bitcoin market themselves.

Also keep in mind that a lot of VC's in Silicon Valley are jumping head first into bitcoin-related companies, which they would absolutely not do if there was any question about the legality or any possibility the government is about to kill it. VC's get a lot of legal advice before investing in ideas.