No. This means the government will regulate it. Regulating and controlling are not the same thing. For instance, if a government passes a law making certain cryptocurrency mandatory as payment methods for vendors, then it does not mean they control them.
In the previous centralized system, the government issues money and controls the monetary policy. In this new system, this power is taken away from the government and given to the public. People now have the freedom to choose which money is the best.
You're right, Bitcoin is a Decentralised monetary asset and was designed in a way that it can't be influenced by the government and other centralised sectors, making it difficult for the government to have control over it's volatility, the least they could do is regulate and track down citizens or officials that use it for criminal activities.
The government is sneaky and smart in ways that you wouldn’t even realize. They can still easily implement regulations about the use of bitcoin. They have a choice to advertise or demotivate people from using bitcoin in which for sure a lot of their citizens would follow. The government has no direct control over bitcoin and will never own bitcoin as a whole but they can do a lot with bitcoin by publishing laws around it.