Remember that the state is incompetent. Eg. The most oppressive powerful country on the planet, China, banned mining a few years ago. Yet China still has very significant hash rate.

The state, even the mighty US, cannot afford to control enough hash rate to censor transactions at scale for any significant length of time.

Bitcoin mining is the most competitive business Vs the State which is the most wasteful organisation on the planet. Difficult for them to win that one.