This is a disturbing trend. Many might cheer the attack on "shitcoins", but the obvious next step is to attack mixing protocols and wallets like tornado cash, conjoins, etc. The stated goal is to ban "a type of Virtual Asset which prevents the tracing of transactions or record of ownership through distributed public ledgers and for which the [Virtual Asset Service Provider] has no mitigating technologies or mechanisms to allow traceability or identification of ownership."
Lightning could get banned by this type of rule. It pretty much doesn't leave any trace in the "distributed public ledger", for the simple reason they it's impossible to do so and scale.
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Commenting here after the arrest of Samourai Wallet devs.
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