Regulators might as well say that doing self-custody is to be put on a "watch list", I don't care. If someone wants privacy, then coinjoins and XMR is the way, and that's why regulators try to discourage their use as much as possible. If we switched to mixing using mining pools, then guess what; this process would then be considered illicit, and anyone mixing through the pools would be "put on a watch list".

By the way, you do know that their operation would then be considered a money transmitting service, right? I'm just saying, because I know you're blubbering this when it comes to lightning.