The problem is that crypto is designed to evade regulation. You can put lipstick on a pig and regulate the centralized intermediaries (which, remember, crypto aimed to disintermediate): exchanges, custodians, ETF providers, ...
The dilemma is that you can either escape those regulations by going to unhosted wallets (self-custody) and transacting on the blockchain, or you keep everything (by regulation) entirely within the regulated intermediaries, but then there's no need to waste 1% of world electricity on some slow "decentralized" database.
How is it designed so? You pass a law that puts anyone running a node 10 years in prison and anyone accepting or paying through it as well. You see, easy.
For this to not be possible it would have to be widely in use and government-backed.