with carrots not sticks. if you want to use your utxo to get dollarsit will have to be sold only after being transferred to a registered custodian. That way it is a one way street sending in your utxo and not being able to withdraw it.

if you do a utxo transaction over $10k they will want it reported and done via a custodian 

fidelity already does this. you can buy btc but not withdraw and they do it in the name of safety. same with etfs.


using the utxo on chain will move to the black market. btc is  and always will be black market money

but how will they stop individuals from holding their own private keys and using the bitcoin network directly?

SimpleStacker

bitcoin

When will the US attack self custody

byzantine

gov employees are pretty simple minded, they will just pass an "anti-hording" law and make treasury holding mandatory for all public companies and large institutions 