What other measure would you guys suggest to meet existing legal requirements?
What legal requirements? If you're talking about AML, the exchanges already enforce this.
Trying to convince lawmakers that bitcoin should be anonymously traded is an absolute non-starter. If that is the foundation's opinion then bitcoin may be declared illegal and the tracking of coins will move to law enforcement. So, what are our other options?
Cash can be traded anonymously, but it's not illegal. I don't see why bitcoin should be different. If law enforcement wants to track stolen coins on their own, let them. Why is it the foundations job to do that for them?