PayPal is now holding a significant amount of Crypto on behalf of clients and this is not a good thing at all

The same can be applied to centralized exchanges, people need to do their own research. There's a problem though, the majority doesn't feel comfortable with being responsible for the security of their assets. It's easier to transfer that obligation to a third party - even if they know the risks.

A lot of effort has to be invested in education regarding Bitcoin and tokenomics in general, and I don't quite think the states have any interest in it. Fun times ahead.