Not completely, no, but it could certainly be stunted. The first question anyone asks about bitcoin is "What can you actually buy with it?" If it becomes illegal for American or European companies to accept bitcoin payments, that would certainly certainly do a lot to prevent it from taking over.
The only problem is that Bitcoin does have an end use—as an anonymous digital currency (c.f. Silk Road). And furthermore, whether you believe it to be 'macroeconomic cancer' or not, it exists and cannot be shut down as a matter of policy.