Something like nostr where each user brings their own LN address and every tip is p2p without a middleman taking custody. Maybe theres a way for SN to generate a payment split, so from every tip made using the webapp, some gets sent to SN. But that won't stop people from tipping using their wallet and sending to user's LN address directly and SN getting no cut.

When these regulations get enforced on SN, it likely won't be too traumatic. Just depends on how much "the law" wants to make SN feel the pain. Best case, zaps are disabled for a few days/weeks while they find some other way to enable tipping. Worst case, they are forced to collect KYC from every user to "ensure" that users aren't making duplicate accounts to bypass the 1099 earning limit.

There are loopholes for things like "credit card rewards". Where users can get paid more than $600 and not have to report it. So maybe if SN gets a good legal defense, they can slide under this exemption.

My thesis is (unless regulations change), SN will have to become a Nostr client like Primal, Damus, Snort, etc.