The only reason they can ban a cryptocurrency like USDT is because it is centralized.
USDC is an alternative but it is just as centralized.
It is not government reason to ban USDT, while they allow another centralized stable coin USDC!
As much as I dislike these government bureaucrats trying to tie even more regulation nooses around our necks, there is no need to panic. They cannot regulate actual decentralized crypto as long as it is stored outside of custodial wallets (like crypto-exchange wallets).
With centralized stable coins, they can freeze these stable coins in your wallets, non custodial wallets through smart contracts. They don't need you to store your stable coins in centralized exchange accounts and knock exchange doors to freeze your account and your stable coins.
But the question is do we even have a decentralized stablecoin?
They will try to arrest founders, developers of decentralized stable coins and make some possible requests. Only Bitcoin with anonymous founder Satoshi Nakamoto and its decentralized design, is free from government pressure and attack.