Blacklists have been a topic in Bitcoin for ages. The problem with a blacklist is that in principle, identity creation is easy. Tornado team gets just one new address, and it's whack-a-mole time for Treasury.
I doubt this will work out the way Treasury thinks it will.
Isn't the point that legal crypto-fiat gateways will do (some of) the job for them, and ban stuff like that (beyond explicit Treasury bans) voluntarily?
https://home.treasury.gov/policy-issues/financial-sanctions/...
Blacklists have been a topic in Bitcoin for ages. The problem with a blacklist is that in principle, identity creation is easy. Tornado team gets just one new address, and it's whack-a-mole time for Treasury.
I doubt this will work out the way Treasury thinks it will.