Isn’t the criticism of this use case that since the exchange of value is not native to crypto itself, its worth as a medium of exchange is sensitive to governme

Isn’t the criticism of this use case that since the exchange of value is not native to crypto itself, its worth as a medium of exchange is sensitive to governments allowing it to persist as a conduit for illegal transactions. Is it really impossible for a government crackdown to make crypto just as hard to exchange illegally as, say, regular currency?