Who is willing to move to the jurisdictions that don’t outlaw self-custody? That’s the key variable that dictates the time duration of the custody ban in your game theory analysis. Whether El Salvador, Qatar (??), UAE, or TEXAS (!!) somewhere else (N. Americans and Europeans might have to move to some obscure spots in order to really pressure this situation in the way you’re describing.

Also, miners in these jurisdictions must win a large share of block rewards & fees. Need everyone to get richer in these jurisdictions, not poorer, so they can withstand the economic pressures sure to be levied on them through macro policy.