Personally I think governments are having a hard time trying to control crypto because even they do not understand it completely. Its decentralized nature makes it hard for the government to just grab it by its neck and kill it. Crypto is a very gray area if you will so regulations must be wisely implemented.
I have read the list of government ruling in their respective countries that are holding Bitcoin.
List of countries holding the biggest stach of Bitcoin. That means the government of thse countries are trying to gain from Bitcon rather confiscating it or selling it in the global market.
Next, we can see how a few countries like the US have come up with ETFs so that they can control a decentralized product through their financial institution. This is just the beginning we will be seeing more of such ways to try and take control of Bitcoin and it's price.
Do you still think the government are having a hard time to understand and accumulate Bitcoin for their own agenda. I doubt they are clueless and I think they are on thier path to make a decentralized economy to centralized economy.
Regulation has always been the plan of the government of many countries these days inorder to control what they don't benefit from or have a direct effect on. Since many central banks has failed to meet customer needs, the decentralized network has been seen as a salvation and as it is now being regulated, I still think it is just only some aspects of it that's controlled and it's working.