It hugely depends on the government. But as I see, there are good and bad regulation such as GENIUS act to keep stablecoin audited is a good one coming from the US, then you see some other country making silly regulation about taxing crypto really high.

Although I doubt these regulation can break crypto by any mean since even without regulation crypto is thriving but it could more or less affect the price. Like it or not if you want wide adoption including institutional investor adoption you will need regulation.