If the government so desired, it could essentially seize all assets represented by the chain, establish an exchange rate, and open the window of the Federal Res

If the government so desired, it could essentially seize all assets represented by the chain, establish an exchange rate, and open the window of the Federal Reserve to redeem tokens when a person provides enough identifying information to redeem their Ethereum for fiat. Essentially making everyone whole for some definition of whole to be determined. It's been done before, in fact, back when the country was fresh out of the Revolution and getting it's feet under it, and disparate currencies consolidated. This is, in fact, exactly the kind of thing Governments tend to exist for.