I think #1 would be the most likely scenario but I think they will have a tough time. Cryptocurrency reminds me of torrent sharing, I think ultimately the government and financial institutions will try and control or shut down as much as they can. The only thing is like torrent sites hopefully it will get to the point where no matter how much they try new coins, platforms etc will keep appearing and they won't be able to control it so the people will still be able to trade and invest in crypto