Most people using crypto - actually running nodes, creating contracts, and sending messages on the blockchain - prefer it to dealing with traditional bank transfers and completely opaque centralized systems. It is often faster, easier, and cheaper to send USDC than USD, and it is far more programmable and extensible to develop an ERC20 contract than hope for a Stripe SDK or Shopify plugin.
People will still use it even if the government attempts to cut it off entirely. Net result is that legitimate users will be treated as criminal, and/or will be forced to use broken banking infrastructure.