[yieldcrv]

My example is limited to

a) the person already having assets in Tornado Cash also being the licensee to withdraw assets from Tornado Cash. the assets they withdraw are as liquid as any other non-TC assets and do not have to go to a fellow licensee.

b) a person that wishes to continue depositing assets into Tornado Cash is also the person that is the licensee.

the only reason for the license is for interacting with the Tornado Cash smart contract - as by default that is currently a sanctions violation for US persons - it has nothing to do with whether another recipient is comfortable accepting those assets, and that isn't a limitation of liquidity at all.

Hope that makes sense. The license is just a bureaucratic nuance for people that dont want to gamble with liability. They can totally try to hide it and risk a sanctions violation charge.