When there's too much intervention of the government it will really affect the decentralization of what cryptos are for.
But can we do something about it? There's none but the same as the government that they adopt, we're also going to adopt what the government will imply to cryptos.
When most crypto people are forming a community then we can face any kind of regulation from government without closing any of the basic characteristics of decentralization. I guess this is what we can do against the regulations of governments. We should not depend on exchanges or any other services where government will be trying to take over the control by mandating KYC.
When we start using everything in decentralized way then government regulations will have no power over this crypto space; but unfortunately crypto people are going for most of the corporate/ centralised services which is reason, governments try to regulate us.
We can still stand on our own.
But, the thing is that we have no option if we're going to have the government and exchanges. There will be those that would be against that idea and there will be those that would love the idea.
Most people have already been used to the centralization despite it counters the purpose of crypto.