Mark Transactions with OFAC Addresses as Non-Standard #29151

Please describe the feature you'd like to see added.

Bitcoin core arbitrarily censors a lot of transactions, not just op_return data carrier size. There's an entire suite of functions in policy.cpp that define Bitcoin's censorship algorithm - isDust(), isValid(), isStandard(), isStandardTx(), AreInputsStandard(), IsWitnessStandard(). The original and sole purpose of those functions is to promote censorship.

https://x.com/AsherHopp/status/1740191968834310654

Use these functions to make OFAC transactions non-standard

Is your feature related to a problem, if so please describe it.

Bitcoin has seen growing adoption globally, but with increased usage, concerns about potential misuse by criminals have also risen. Governments have the power to make bitcoin illegal in certain jurisdictions or force exchanges to delist BTC, similar to other cryptocurrencies like XMR. This regulatory uncertainty can adversely affect investors, businesses, and even delay the approval of ETFs associated with bitcoin.

The current landscape allows for the inclusion of OFAC (Office of Foreign Assets Control) addresses in bitcoin transactions, which may be exploited by individuals with malicious intent. Governments and law enforcement agencies are increasingly vigilant about tracking financial transactions involving sanctioned entities. To maintain the integrity of the Bitcoin network and address regulatory concerns, it is crucial to implement measures to prevent the use of bitcoin by criminals.

Describe the solution you'd like

Mark transactions containing OFAC addresses as non-standard to ensure that they are not relayed by bitcoin nodes. By doing so, we can create a deterrent for criminals attempting to use bitcoin for illicit activities, thus promoting the adoption of the cryptocurrency by law-abiding individuals and businesses.

Politicians and other criminals should not be able to use bitcoin network.

Describe any alternatives you've considered

No response

Please leave any additional context

Individuals involved in illicit activities could consider offering miners incentives to confirm their transactions, provided a miner is willing to accept the associated risks through an off-the-books payment.

Mark transactions containing OFAC addresses as non-standard to ensure that they are not relayed by bitcoin nodes.

You cannot enforce other people to run any code like this on their nodes. You are free to patch your node and do it yourself. But that doesn't mean such transactions can't be mined by the miners. 4G inscription transaction was non-standard, not relayed by nodes, was sent directly to miner and mined.