what you lot are ignoring(still) is it doesnt matter of source of funds before a mixer.. its the use of the mixer itself that puts a red flag on a utxo, which gets put on a watchlist(wher they can then look back at movements before he mix)
and those receiving funds from a mixer are red flagged. where that utxo is put on a watch list and they can follow the movements after the mixer
We're trying to fight back by abrogating the bold part. Because the use of a mixer in itself does not constitute a crime even in Federal law (and we have to make sure that crooks do not attempt to make it so).
Currently the only entities that read the "watch list" are feds, like NSA and such. The only thing they can do about it is give you legal trouble. That's it.
They're not forcing anyone to seize your funds or block your use of payment processors/exchanges, because the corps that are actually doing that are largely acting on their own (with their own goofed up criterea about what is suspicious - there was a report that a casino tried to make a guy do KYC by
standing in front of a street sign holding a newspaper and ID).