James O'Bierne makes the point that the most dangerous scenario is thus: the state gives all custodial services 72 hrs notice that they must start enforcing tax laws or surveillance or multisig spending conditions. The actual wording is irrelevent. The real attack is that there is not enough on-chain throughput for all custodial service users to exit to self-custody in time.

It's like a fishing trawler dragging a net across the entire seafloor. The sea creatures simply cannot escape in time so most of them get caught in the net.

CTV solves this problem the same way it solves mining pool payouts. Put any number of payouts in a single tiny transaction on-chain. Users can unroll it later, but crucially, they can escape the custodial system on short notice.