-This project violates all applicable US laws
0/10 he violates every single law in the US. ALL OF THEM!
applicable is the operative word
Namely:
He's selling an investment without complying with SEC regulations (this wouldn't be illegal except for the fact he's claiming to be a US citizen)
He's selling a virtual currency directly to buyers without any kind of know your customer regulation(Look at the liberty reserve shutdown if you don't think this is illegal. That guy was even from Spain not the US but they still got him.)
Bitcoin doesn't have a centralized operator and so nobody can be charged with running it. There's no company that maintains the source code since its open source. If you had to buy Bitcoin directly from Satoshi Nakamoto, and he lived in lets say Kansas, the whole thing would be shut down and declared illegal right away. That's basically what "Mastercoin" is.
He hasn't even tried to comply with the law and ignores this criticism.