Regulatory Risk to the Zcash Ecosystem and the ZEC currency

Yes, we’re in strong agreement. But as the Zcash ecosystem exists right now, we are completely relying on the USA and an environment where the SEC continues to take no action wrt The Howey Test and the capacity to prosecute certain ZEC sellers as unregistered securities brokers.

Ideally the distribution of ZEC by the block rewards entities would be occurring through legally registered paths, both inside and outside of the USA. Being All-in on the USA currently is a large carry of risk to the context that none of the 3 block reward entities are registered to be brokering their ZEC.

I’m not sure that I agree about HK. I would assert that Switzerland could be a better #3 jurisdiction (And Shielded Labs is already making great progress in Switzerland). Portugal, The Czech Republic, Ireland, and El Salvador also come to mind. I worry that you overestimate the USA’s palate for respecting constitutional protections granted to citizens on paper… Let’s have a revisit of the Edward Snowden leaks, as one flagship example of the USA not actually upholding the constitutional rights of its citizenry. To the context of anything economic-financial-commercial, we would be acting naively to assume that the USA wouldn’t also exercise behind the scenes constitutional violations.

It is these questions that are most concerning. Between the three block reward entities there are around 500,000 ZEC in possession and more than $15,000,000. It would be catastrophic if the USA SEC took prosecutorial action against these core Zcash ecosystem builders and caused those assets to be frozen or seized.

This discussion has me continually thinking of an age old aphorism.
An ounce of prevention is worth a pound of cure