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This from Lola Leetz is interesting:

"Terrorist financing" is the one major concern that will push CLARITY Act DeFi discussions on KYC/AML over the edge. And the biggest terrorist there is, according to the US, is the very country now demanding payment in BTC – explicitly to bypass sanctions and confiscation.

If you KYC every endpoint, BTC can be confiscated just as well as any other asset on earth: through the threat of force and violence. Ensuring freedom of transaction in the US (and arguably anywhere else) just became a hell of a lot harder.