Governments have a natural hostility to private mediums of exchange that complete with their fiat currency monopolies. From Omid Malekan at medium.com:
Some years ago, when I first began telling people about crypto, a friend pushed back and said that the government would never allow Bitcoin to succeed. “Money is power” he said, “and no self-respecting government is going to give that power up.” I told him that I agreed, but that Bitcoin was still too small for governments to take seriously. By the time it became big enough to register as a threat, it would be too late.
Then came the 2017 bubble, and a ten-fold jump in value in a matter of months. But that rally happened too fast for anyone to react, and collapsed just as quickly, alleviating any concern that cryptocurrencies might someday contend for significance in broader society. There was a regulatory crackdown around initial coin offerings, but it had more to do with securities violations than the threat of a new kind of money.
The current rally feels different. Both blockchain and crypto have had almost three years to prove their utility and seep into the cultural zeitgeist, and digitally native solutions that are not controlled by any corporation or government seem more appealing in a continuously fracturing post-Trump and post-Brexit environment. The pandemic is bound to change everything, so why not money? The current rally is also driven by institutions, so it has staying power. Paul Tudor Jones and MassMutual are more likely to stay with Bitcoin for the long haul than that YouTuber who used to shill XRP.