They'll try to enforce regulation anywhere they can.
Big public LSPs will definitely become a target.
However, when most people run their own nodes, or start sharing smaller community nodes, that'll then become very hard, if not impossible to enforce - And I think that's the direction we need to go.  

Line2Wire

But again, the custodial solutions are becoming more and more of an easy target, and in return let down newly onboarded users.

Yes, and my pessimistic guess is that LN providers like ASYNQ and Breeze are also going to be targets even though they're non-custodial. I wish I'm wrong about it.

Maybe Lightning on Liquid would be a good thing (Juraj Bednar proposed it too). Sort of like real LN but with negligible costs to open and close channels.

bitcoin

How's Liquid doing in the current landscape?

Yeah, I think we basically agree.

> But again, the custodial solutions are becoming more and more of an easy target, and in return let down newly onboarded users.

Yes, and my pessimistic guess is that LN providers like ASYNQ and Breeze are also going to be targets even though they're non-custodial. I wish I'm wrong about it.

Maybe Lightning on Liquid would be a good thing (Juraj Bednar proposed it too). Sort of like real LN but with negligible costs to open and close channels. 