>Access to the U.S. electronically facilitated financial system is one of the strongest forms of soft power projection on Earth.
>This is made possible through money transmission being regulated.
>Part of being an authorized money transmitter is compliance with OFAC sanctions on a strict liability basis. OFAC sanctions are not constrained by by normal constraints on domestic law enforcement. You can end up on the OFAC list. You can appeal it, but the burden of proof is on you, and the Government does not have to share with you why you got put on there in the first place.
>Sanctions are often diplomatic. Courts will not say the executive does not have standing, as it's enumerated right in the Constitution, that is the Federal Government's job.
>Violation of sanctions as a U.S. citizen is criminal. While it is not necessarily practicable yet to ascertain which node originated a particular block, it is not impossible to sufficiently instrument enough of the network to make such determinations possible, and eith PoS tending to centralize, the value of setting up said monitoring to facilitate enforceability is high, even if only for investigative/intelligence community purposes. Remember, these are the people who brought you PRISM.*
>Any violations of sanctions will be transparently evident on the blockchain. The receiving address of the value from the sanctioned address will be added to the SDN.
>The overall network effect is such that no one that desires to do business in the U.S. will cash out your coin.
>No technical impossibilities exists that will prevent this eventual outcome.
The only X factor, is how much time it will take for the tooling to get there