Guaranteed that if they're interacting with a bank or card network, there's KYC involved (in the US and most western countries). So that defeats the whole "fully anonymous" bit.
I still don't understand the "anon" value prop of crypto. We've had anonymous payments for goods (like groceries) for a long time - cash.
I would not consider cash anonymous in a grocery store anymore. They're tracking you through other means, including using the bluetooth in your phone, hiring facial recognition companies, and other bits of data to try and have some form of identifier for you that they can put all your purchases on.
Craigslist has logs of your conversations, which they will definitely share with police when asked (which likely happens all the time) and then the police can buy your phone location data from whoever and track what happened.
Nothing is anonymous without extreme and CONSTANT effort. Any second you don't have perfect opsec, you should assume you are perfectly tracked. This is independent of any laws congress makes, because the policing apparatus does this itself.
The only way to change this is make it illegal to track transactions for anyone, including police, but the second we do that we will see significant sanction busting, money laundering, spam, scams, online casinos, fraudulent businesses etc.
All crime involves money at some point, and if you want to allow the police to fight that you have to allow money to be tracked. You don't get both options.
I think making money untraced is not useful, and instead, we should be fighting for a government that is free enough to allow your entirely tracked transactions to do what you want. Buying some drugs or sex? Whatever, just pay your sales tax. The government knows what you do, that's the modern reality, so build a government that allows you to do things that don't harm others.
