With the rise of Defi's crypto is pretty much detaching itself from the Govt. and it looks like it cannot be stopped. If the govt knew about crypto and its implications years ago they could have stamped it out. Now, it is too late for them.
DeFi is just a market for trading altcoins to altcoins in a more or less decentralized way, despite its loud claims, it's not going to ever replace traditional finance, DeFi can't even do a fraction of what traditional finance does.
The government always knew about crypto and it wasn't a threat to them back then, and it's not really a threat now, cause otherwise they would stopped it. And inb4 you say crypto can't be stopped, I will say yes it can, as long as you control or block large centralized services, adoption will be stifled.