Imagine a financial regulation change where in order to comply with anti money laundering laws, one needs to keep all our your kyc BTC, custodied, in a federally chartered financial institution, and if you don't comply and deposit your kyc BTC into your bank account, then your fiat accounts get frozen until you comply. You can't pay your mortgage, you can't get insurance, you don't get your pay/pension cheques etc.

That's a very very small step from where we are now.