I think an appropriate endgame would be an extension of #3: any regulated entity (e.g. an exchange) may not accept cryptocurrency which, anywhere in its history

I think an appropriate endgame would be an extension of #3: any regulated entity (e.g. an exchange) may not accept cryptocurrency which, anywhere in its history since the last time it came from a regulated entity, went through something sanctioned. This, of course, would mean that Monero would be right out. In general, most of the supposed value of cryptocurrency seems to be that everyone looks the other way when parties do things that look like or are illegal but take the money anyway. Functionality, cryptocurrency is very similar to e-gold, and I see no reason it should be allowed to do the same things just because it’s somewhat decentralized.