Puppet... till now no one feared the chinese government because of selling shares. btcgarden only closed because of the risks involved with chinese crowdfunding, as far as i know. And friedcat always checked out such potential legal risks to Asicminer. I mean it would be pretty stupid to risk all his income. So if you now start to generally question the legality then why not start at bitcoins? Its still a gray area and governments would have any right to forbid bitcoins. That happened with many regional currencies before often too.
So far i trust friedcat more than your legal advice in a anyway legal gray area.
Of course once colored coins get used, that may change, if these colored coins represent securities, that has the potential to threaten bitcoin
Agreed, if they use the blockchain to represent colored coins/securities, it will give them ammo to go after the entire Bitcoin protocol. Or if Ken creates an alt coin, then the exchange it's hosted on would be targeted.
These solutions are a step ahead right now, but only one step.