analysis can be done to ensure any coin being mixed is not stolen.
That would mean 1 BTC ≠ 1 BTC! It means you could never accept a payment without doing an investigation, and the evidence of a possible theft (possibly far up the blockchain) could be weak. What if someone claims you stole the Bitcoin he paid you?
I'd say that's a terrible slippery slope to enter.
I specifically did not endorse the proposal I brought forth. Automated tools could be used to detect if a transaction is associated with a theft/hack, and could act accordingly. I do agree that there are issues if it is not clear cut if the coin being sent is actually stolen, or even if a hack/theft even took place. This is why it is better to let the courts decide, and judgements could be enforced when someone tries to convert their coin to fiat (not stablecoin).
As I mentioned in my previous post, if you are moving 4k BTC through CM, for all intents and purposes, a competent professional blockchain analysis firm should be able to trace where the coin is withdrawn to.