Maybe that custodial services can be set up by anyone?

Forget regulations, setting up a payment transaction service in fiat land requires a ton of infrastructure.

With bitcoin/lightning, anyone with AI can get something set up overnight with zero external requirements. They don't even need to be on the same hemisphere as their customers.

This creates competition. Competition leads to benefits for the customers.

If competition somehow is captured or fails to build critical mass, the window opens for more decentralized options/innovations to build (like Zeus's on-device node, cashu, etc).

Taxes will be evaded via peer to peer transactions. The incentive to do so will only grow. And code is now cheap/essentially free to produce.

The state will still get theirs. It'll end up being more at the infrastructure and trading level. Think VATs.

But they will have lost the ability to control local economies, assuming adoption. THAT is enough to shift everything.