Your perspective is short-sighted, in my opinion.
Yes, it is easier to think and behave how you recommend, but that does not make it healthy or right or smart or necessary.
This is not a question of shoddy legalese, it is calling a duck a spade for the preservation of the duck trade.
He can afford KYC hoops, and there are services that can help with that. Why assume he has made any effort at all in that regard?
No one expects a bitcoin financial service effort to be totally SEC-proof at this point, but the SEC does indeed value good faith efforts to operate within the law. They do not, however, respect deception and the contrary.
Yes, I can acknowledge that legal developments take time, I know this first hand. But I do not see how asserting a false position is wise, nor how a legal team could recommend such.
I don't think it is short sighted, actually - if I were impatient, I'd yield to the short-sightedness of it... but I'm not. I'm actually advocating patience. Nothing happens overnight, and while I understand and even appreciate the view you have on the matter, you came off (to me, anyway) as demanding instant results instead of making a suggestion. That's the only reason I spoke up, really - you came across as being unreasonably offensive (not offensive as in smell, offensive as in opposite of defense. There's probably a better word for that, but I'm in a hurry right now.) The sentiment is right, the delivery was a bit over the top. That's all.
/dinner time