What now for crypto?

So I wrote an article last about my concern that governments would start regulating cryptocurrencies. Yesterday, we saw big price drops in many cryptos, largely due to speculation about regulation in the cryptocurrency space. Can the government really regulate this stuff though? Is it out of fear that cryptocurrencies might take over their government's currency? Is it out of protection for the users who cannot insure crypto like fiat money? Is it because they feel threatened? In any case, it seems that the government is trying to destroy it. Thoughts?