The raw legal code is online at: http://www.access.gpo.gov/nara/cfr/waisidx_08/31cfr103_08.html
I am not a lawyer; trying to understand legalese is just an odd hobby of mine. From my reading of the regulations, if you exchange less than $1,000.USD worth of Bitcoin per day you don't have to worry:
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(1) Currency dealer or exchanger. A currency dealer or exchanger (other than a person who does not exchange currency in an amount greater
than $1,000 in currency or monetary or other instruments for any person on any day in one or more transactions).
than $1,000 in currency or monetary or other instruments for any person on any day in one or more transactions).
It looks to me like if you exchanged more than $1,000.USD per day a good lawyer might be able to argue that Bitcoins do not meet the legal definition of "currency":
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(h) Currency. The coin and paper money of the United States or of any other country that is designated as legal tender and that circulates
and is customarily used and accepted as a medium of exchange in the country of issuance. Currency includes U.S. silver certificates, U.S. notes and Federal Reserve notes. Currency also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign country.
and is customarily used and accepted as a medium of exchange in the country of issuance. Currency includes U.S. silver certificates, U.S. notes and Federal Reserve notes. Currency also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign country.
Then again, if Bitcoins are not legally "currency" then it might be left up to a Court to decide what, exactly, they are, and the result might be really unpleasant (if a judge decided that they're like stocks and are therefore subject to regulation by the Security and Exchange Commision you might find yourself in jail for being an unlicensed stock broker).
I think Bitcoin needs some licensed, regulated exchanges that abide by all the regulations, treating Bitcoins just like another foreign currency, and make it really easy to buy or sell a few hundred dollars worth of Bitcoins. The regulations are not as onerous as I expected; basically you just have to get identification from customers that make large transactions and report them.