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A comment on A Major Coinbase Milestone: 1 Million Consumer Wallets. Parent comment

Re:A Major Coinbase Milestone: 1 Million Consumer Wallets by thinkcomp on Thursday February 27, 2014 @01:37PM (#7314002)
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.

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[deleted]
Re:A Major Coinbase Milestone: 1 Million Consumer Wallets by thinkcomp on Thursday February 27, 2014 @01:46PM (#7314066)
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

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