Telling exchanges to remove it and making it illegal for merchants to accept it as payment
They made drugs illegal, look how well that's working out.
I'm not saying Monero will crash and nobody will use it if it gets sanctioned, but just like ETH coming from Tornado Cash is considered tainted the same could apply to all Monero.
Monero is untraceable.
And so is ETH going through Tornado Cash, but that didn't prevent Tornado Cash from being sanctioned