Would you still hold Bitcoin in non-custodial wallets in the event that you needed KYC to use one? Is legislation even necessary?

Coinbase CEO Brian Armstrong is warning Bitcoin owners about legislation cracking down on self-hosted crypto wallets that may be hastily introduced in the Trump administration's final days.
Self-hosted crypto wallets, also known as non-custodial wallets or self-custody wallets, allow crypto asset holders to protect and house their crypto independently and without the oversight of a custodian such as Coinbase.
The CEO suspects that the new legislation would require financial institutions like Coinbase to verify the identity of any self-hosted wallet owner receiving crypto assets.
Though this may seem like a reasonable measure, Armstrong stresses that it can be difficult and impractical to collect identifying information from recipients in the crypto economy
Armstrong points out that crypto-assets like Bitcoin serve a wide range of purposes across the web and many of those functions would be greatly hindered by the possible legislation. In some cases the Blockchain's unraveled technology is used by smart contracts in order to use decentralized finance (DeFi) apps, build an app around Ethereum's technology-which include revolutionary dapps like -EarnBet an online decentralized casino that seeks to revolutionize crypto gambling. On the other hand, the cryptocurrency with the highest market capitalization-Bitcoin is used in order to buy and sell goods on decentralized p2p platforms like Open Bazaar which contribute to the economy as well.
Many Bitcoin holders are also sending Bitcoin to people in emerging markets, where it is difficult or impossible to collect meaningful “know your customer” information. Some of these individuals are living in poverty, and may not have any permanent address or form of government ID.”