This scenario is extremely unlikely because there are already too many big players involved. They won't let the government make them lose a lot of profit. Incentives are on Bitcoin's side.
Well, it would be dumb enough to ditch crypto altogether. Governments would lose a lot of money this way (no taxation). It's why most countries have decided to join the craze. Even if they don't care about decentralization at all. It's all about money, power, and control. And indirectly, governments control crypto through CEXs.
We can be confident crypto won't be outlawed anytime soon. At least within most countries worldwide. If you're living in a country with "anti-crypto" policies, I'd suggest you get out of there ASAP. Assuming you can afford it. Let's hope all of the world adopts crypto, for complete peace of mind.