I’d much rather we fight those regs than give in. Travel rule is a thing but the compliance needs to focus on the exchange -> exchange transactions, where the rule applies, rather than forcing the exchange -> user transactions to add more complexity.
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The point remains that we need to add innovation to obsolete the feature or better break the surveillance use case.
If you take it out you fragment the versions in the network and long term likely force a chain split.
And travel rule and Mica require verification that goes much beyond just signing a message, so if you want to take it out to snub regulators, you are only snubbing the more privacy focused ones like the Swiss, not the evil jurisdictions.