Not sure that's possible to do it smoothly.

But as the value of the Bitcoin networks starts assassinating any hopes of controlling dollar inflation, my suggestion as head of the fed is to raise interest rates to 20% thus squashing any leveraged plays on Bitcoin. Exactly what they did when gold prices soared in 1971.

Alternatively, the government can develop a mitigation strategy to fund any old rich politician that wants to run for office and wag their fingers and say things like, "Bitcoin is bad because criminals use it". And to find old out-of-touch people to go on cable news networks and complain and talk about how Bitcoin doesn't have any value at all because it doesn't produce anything.

This octogenarian approach will fail. But it'll be fun for us to ridicule them.