Given all the noise about Bitcoins I can't resist another post today. Regulators are apparently jostling to be among the first to regulate Bitcoin businesses as money transmitters following the announcement by the U.S. Treasury Department’s Financial Crimes Enforcement Network. Assuming that no federal regulatory framework is proposed, I expect a handful of the states looking for "impact regulation" will be the first to propose specific regulations. But then I also expect that eventually, the federal government will preempt all state laws and regulations involving Bitcoin. Until then, Bitcoin will provide a rich source of laws and regulations (and potentially fees and taxes) for state governments.
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