I know it doesn't matter in the larger scope, but what service does government offer in the crypto space that legally entitles them to tax people within the space?

At least when dealing with fiat, it does have the assertion that it's in charge of commerce, but since crypto doesn't use U.S. land, or ship through it's waterways or airspace, what exactly do you think they can legally claim is taxable? They don't even offer the infrastructure for the internet to function so there's literally nothing they provide in exchange for the taxes they're seeking.