Stealing physical currency is /so easy to do/, governments have no idea what they are getting into trying to steal cryptos.
You have to pay, just like our transaction fees, for every manhour involved in moving paper currency. And one piece of paper is always 100% centralized in the hands of one person at any given time.
Imagine a cryptocurrency with any of those qualities. There are simply not enough opportunities for governments to steal a proportional amount from you. Steal they will, but they will actually have to /try/ now, which is going to cost more than it is worth in a market so heavily invested in subverting this kind of behavior.
Edit: And I agree with the OP that this will only drive adoption. Call it theft, but call it interest as well. Governments aren't going to steal something that has no value to them.
Since when does government care what anything costs? It's not "their" money in the first place - it's OURS. A government on the downside of its lifespan is desperate to survive and will do anything to survive. Laws authorizing seizures of any kind are a sure sign of desperation. They can't conjure up many more QE dollars to save their sorry asses.