Actually, no. PayPal is licensed and bonded in 47+ states. Coinbase is licensed in 0.

I don't think it's the best regulatory framework, but it's all we've got.

You're right, the surety bond system is fundamentally flawed. But it's $9 million more in security (in California, since different states have different bond requirements) than Coinbase has.

I've advocated for an FDIC-like system for money transmitters, run by CFPB or some other entity, for three years. Congress is hard to reach these days.

http://www.thinkcomputer.com/corporate/whitepapers/heldhosta...

http://www.thinkcomputer.com/20140214.cfpbcomment.pdf