A new EU report argues that Bitcoin’s Lightning Network and other layer 2 solutions could enable criminals to obscure illicit transactions.
The First Report on Encryption by the EU Innovation Hub for Internal Security singles out the Lightning Network, arguing that its “two-party multisignature payment channels will not broadcast all transactions to the blockchain, but only the opening and closing of the channel.”
LN has gone under the radar so far, e.g. it's been exempt from the travel rule where enforceable. Looks like it's now starting to attract tyranny's attention.