So to keep members a confidential detail you would need to use gift wraps to send your newsletter to each of them and re-wrap their messages when broadcasting to all readers to keep the list private. Then people can copy the content but not the members unless those communicate their membership out of bands.

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Yeah copying content is fine.

Isn’t that how normal newsletters work?

You could define the community membership, privately, over the encrypted relationship status (kind 31382).