It's very unlikely they could eliminate Bitcoin entirely.

Though new regulations are coming, there's only so much control they can actually have. Unless they somehow manage to physically stop every miner, there's very little change they can have a finite effect.

Take China, for example, they've made all ICO-related investments completely illegal, yet millions of Chinese RMB are still being invested and hundreds, if not thousands, of people are still hodling their tokens. Could the gov't find out who each of these people is and confront them, take them to jail... Maybe, but it'll take them a really long time, and most people will just go to a jurisdiction that won't be so tight on their rules.

Blockchain is the future because it needs no centralised servers to hold it, it's a free currency.