The government can only create laws to halt people especially traders and investors from investing in the crypto market but that would never stop the flow. We still have the option to go for what we want and how we want it. The government might be pushing for penalty for people that would break a particular law that is restricting people from making any form of investment with severe sanctions but that would never stop us. Cryptocurrency is an investment of choice and it is mostly decentralized without the permission of any government officials to determine when we are buying or selling cryptocurrency.
You'd only need permission from the government to buy/sell crypto through a centralized exchange. But rules don't apply to decentralized exchanges and/or services. After all, governments can't enforce regulations on them. If they find themselves "deadlocked", they will make crypto "illegal" for mainstream use. Some people will secretly use crypto to enjoy true financial freedom. But the rest will be afraid of getting into something that's outlawed by the government. That's the way it works.
All that matters is that crypto stays decentralized so that it could stand the test of time. With decentralization, governments will be unable to stop the revolution. Hopefully, crypto will live alongside CBDCs for generations. Just my opinion
