I am relatively new to the crypto space, and I was hoping to understand this a little more in depth.
Fungibility is clearly one of the most important aspects of any currency, and a bitcoin that is "white-washed" by the FBI being valued above another bitcoin presents a problem. That is where the privacy of Zcash presents significant value.
My question is, is there any way to prevent Zcash used on the black market from being laundered through exchanges? Someone could easily be validated through KYC while also using crypto on the black market. If the history of the coin can't be tracked, like what Chainalysis does for Bitcoin, how can money laundering be prevented? If the SEC can't prevent money laundering with Zcash, I don't see why they wouldn't eventually make the use of Zcash illegal in the United States.
Thank you in advance for your help!