Bitcoin Regulation

Long time lurker here..

I dabbled in BTC a few years ago and just recently have been bit again by the BTC bug. I see now there is alot more notoriety about BTC and with that I see that there has been quite some buzz among the US Govt. about how to regulate ("Dare I say" better track) Bitcoins and their usage. I currently use coinbase as my online wallet but not sure if this will become/Is an issue as the Treasury department has issued them a sopena asking such things as: how well are they equipped to deal with money laundering. Not to mention they very well could be required to turn over account information to the govt if requested. I have already read some post around here that CB has not allowed certain transactions that they deem "high risk". How trustworthy do you think CB is?

Do you think it possible with the intrusion of the US Govt into BTC could bring upon its down fall? Would you still use BTC if it were as as regulated as the USD?