The government in the past have attacked bitcoin times without number but they failed because of bitcoin decentralized nature. They have no option than to allow it coexist with other asset because bitcoin has proven them wrong and continue to maintain its nature and the purpose of her creation by Satoshi. The people have known that the government have been spreading the FUD about bitcoin because they don't want their citizens to understand the true potential of bitcoin. This is why the government accepts the coexistence because the citizens wants to invest in something new to save their wealth from fiat depreciation overtime.