Please explain how he's immune to SEC regulation and Know your Customer regulation (money laundering regulations) while directly selling a virtual currency as an investment.

Dacoinminister's "Mastercoin" proposal is taking Bitcoin in exchange for what he calls an "investment" without any regulatory compliance. Here's precedent for that being illegal: http://www.pcworld.com/article/2045083/sec-charges-texas-man-with-running-bitcoin-ponzi-scheme.html

Dacoinminister's "Mastercoin" proposal is taking Bitcoins in exchange for a centrally issued virtual currency. Here's precedent for that being illegal: http://www.paritynews.com/2013/05/26/libertyreservecom-shuttered-founder-arrested-in-spain/

Please refute these points rather than assuming it's legal without any reasoning.