I think it’d have been worth mentioning and considering another distinction between private centralized and public decentralized ledgers, that on the latter all transactions, albeit between unidentified pseudonymous parties, are literally broadcast to the world and law enforcement. 1/

Analogous transactions are completely invisible absent specific investigation and costly legal processes when made using traditional centralized ledgers. 2/

That does make visibility on cash-out a more powerful tool in the decentralized case than it would be in the centralized case, because identified bad transactions can be traced link-by-link to identified cashing out parties. 3/

Of course, lifting sanctions on Tornado Cash contract addresses and the many peer and successor system that will result if they are tolerated undermines this distinction. 4/

But during the pre-Trump equilibrium, in which “privacy stablecoins” were crushed but public stablecoins were tolerated, there was a colorable argument for the distinct regulatory regimes. /fin