The exchange of bitcoin to Central Banking Notes - notably the US FRN, needs to be regulated. The Fed needs to know how much money Bitcoin is costing them. AND make it harder to get involved with. McDonald's does NOT want you to buy a Whopper. So a trade with the enemy is indeed a crime that needs to be licensed. Do so. Leave Bitcoin alone. There is no way to regulate it. Insuring people's deposits??? HA You mean like the FDIC that has (Recent figures) 1.01% of the deposits they insure actually covered by liquidable assets? So if the banks fail your precious FDIC would ONLY be able to pay 1.01 CENTS on the dollars you have.

What people don't understand is that technically, Bitcoin is illegal everywhere there is a Central Banking System. Why? Because it's not a LEGAL TENDER currency. You cannot pay your taxes with it. ALL taxes must be made in legal tender script of the realm. That means FRN's, Silver Liberties (at FACE value) and Gold Eagles (At FACE value). The coins MUST be US mint coins otherwise they are nothing but a collector's piece.

Because Bitcoin is open source and all transactions are transparent, they cannot manipulate it like they do gold and silver. Thus they want no part - yes, it is ILLEGAL. THat doesn't mean it is unlawful.

See Bitcoin is a Common Law currency like gold and silver. There is only so many of them, they have an intrinsic purchasing power and when you use a bitcoin to pay for something it is PAID FOR. When you use a FRN to buy something in commerce, you are becoming the holder of equity in due course because you used in instrument of DEBT to pay - thus sloughing off the responsibility for payment onto the holder of the FRN note. Like giving them a cheque, FRN's are no different.

See there's the conundrum that the banks do not want us to understand. I'll say it again - it takes (as of Friday's Close) 16.7 federal Reserve Notes to buy ONE US Dollar. (Coinage act of 1796.)