So there are several different options here:
Case 1: Secret and straight-up illegal. The Project has a bunch of stuff that is illegal and hides it. There are multiple challenges, but the core issue is that if any of it were revealed, the whole Project would likely be shut down.
Case 2: Secret and not-yet illegal. The Project has a bunch of stuff that is legal only because the government doesn't know anyone is doing it. This is the idea that they could use railguns and freeze tubes and not be violating any laws, but the reason I specified secret is because as soon as these technologies were revealed to be viable they would be regulated as quickly as possible. If Smith and Wesson rolled out a man-portable, lethal railgun tomorrow, the next day would see legislation before Congress to have them regulated by the ATF. So this is basically still Case 1, but everyone gets to sleep easier knowing that they are not technically breaking the law and that if uncovered the Project would be doomed but no one would likely go to jail.
Case 3: Not secret and probably illegal. This is the DARPA case, where the technology is developed legally because it has government sanction, but where the Project appropriates it for its own use. I say "probably" because it is possible that the actual appropriate would wait until the government was defunct and "legal" meaningless, but that is a convoluted case - essentially the Project becomes a group that just sits around waiting for the government to fall, and that is not a group DARPA or the rest of the DoD wants to contract with.
Case 4: Secret and not illegal. Not sure how to do this. No freeze tubes, nothing more than basic weapons, etc. Severely limiting.
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