"Bitcoin" encompasses multiple and distinctly separate concepts, namely: a transaction network, a currency, a wallet, and mining operations.

Does the wallet in your pocket get regulated? No, that's silly. It's just a container for currency.

Do the coins in your pocket get regulated? No, that's silly. It's just coins.

Does the generation of money get regulated? Absolutely, it's more tightly controlled than most other activities are in humanity. How will they regulate BTC mining? It's not really possible, but they'll likely engage computer hardware vendors of all stripes and sizes (across the planet) to pool purchase order histories to the government.

Do money transactions get regulated? Absolutely, it's another tightly controlled activity. How will they regulate BTC transactions? It's not really possible, but they'll likely engage BTC exchanges of all stripes and sizes (across the planet) to pool transaction histories to the government.