By slyly shifting the majority narrative and use of Bitcoin from a P2P MoE to that of a speculative commodity. Oh look! They have already largely achieved this! And very few people even noticed...

I don't think that they can actually destroy it, but thru could certainly bury exchanges in regilation or increase the capital gains tax to the point where your average person that uses BTC as an investment would be disuaded.

There will always be people who use non KYC or p2p to keep it from fully disappearing, but the government could certainly effect the rate of adoption.