The headline is a bit click-baity. I read the article and I'm not sure why this is "next-level surveillance"... Coinbase will provide info on its users. Some users won't care, some will take their business elsewhere. There's literally hundreds of exchanges, not to mention P2P. If BlackRock is limited to buying on Coinbase, they'll probably just pay a hefty premium for their assets since their liquidity will be limited to people who are willing to accept Coinbase's surveillance. We'll probably see large bid-ask spreads too, since who the hell would want to buy under those circumstances (other than BlackRock which is a captive customer)?

Sounds like an arbitrage opportunity for some large corporation that can buy worldwide and sell on Coinbase.