Government is formed as a way to manage a society/community of people, if blockchain/crypto gets big enough to have hundreds of thousands of adherents, you'll also need a way to manage that "society". Some people think "the algorithm rules all", but as we've seen the algorithm is messy and has bugs and allow for thefts where you lose everything in a split second. It'd be like joining a society where muggers are free to roam and mug you, and to mug them back you have to find a cleverer exploit as your knife.

A blogger I read once laughed that an exchange/crypto-coin who suffered such a hack decided, to get their money back, they would contact... the police/FBI. Yeah, so much for that "We can't trust the government!" mentality.