Smells like the state game plan is to tax bitcoin to oblivion, pushing holders to custodians that allow them to live off (fiat) yield. This allows the state to rehypothecate bitcoin and suppress its price. This is the best way to keep the fiat rich in power and happy and by extension the governments they control.

The only way around this is widespread education and adoption of self custody, but making that legal, easy and safe seems >10 years away, to be frank.