If I may relate this to my experience with the government's war on another online activity that's profitable for smart people, online poker: if they try to ban it, it won't go away, but a lot of the easy money will dry up. Some crypto companies will do profoundly illegal things to stay afloat, and that will work for a while, but eventually they'll get caught and there will be another contraction round. The community will get smaller, and the people within it will be forced to get immensely better at what they do. Eventually things will start to open up again and the people who stuck around will have far more skill than those who left.

And most importantly: the people with money already in the system will have a huge advantage over those who have to try to get here from fiat. Build value now while it's easy.