This could be the start of free vs govt bitcoin. If I were a malicious bureaucrat, this is what I’d do:

- authorize banks to custody bitcoin (this includes BlackRock’s ETF), to pull bitcoin into the regulated financial system

- force holders to register their xpub key (they might do this under the FBAR regs), so they can see all transactions

- tell holders that they must either transfer their bitcoin to a registered custodian or to a registered wallet, under severe penalty

- block transfers to unregistered accounts

Probably most people would comply and then those people will be trapped.

A few of us would be free and able to transact internationally. Those in the US with only one passport will be more at risk.