I see the BitInstant Foundation For The Prevention of Competition circlejerk has arrived to dispense their usual, shitty legal advice.
What? What kind of snide comment is this?
It's a comment to point out the fact that you and Jeff do the same little irrelevant "scary regulations" dance on literally every other thread in this forum that pertains to buying or selling Bitcoins outside of the large exchanges.
It would probably be considered illegal market manipulation under the laws you like to cite, if it weren't so ham-fisted. At the very least, it should be considered unethical for a developer/insider and an early-adopter to go out of their way to discourage someone from selling his Bitcoins, under color of law no less.
So whether you two are doing so intentionally or unintentionally, that's what it looks like to a casual observer. And it really just needs to stop.
(4) Seller or redeemer of traveler's checks, money orders or stored value. <---- This is what BitInstant is.
This, for instance, seems like diversionary nonsense. What BitcoinINV posted is the correct interpretation. The "stored value" that you exchange are MtGox codes. And you are regulated because you handle other people's money, not because you sell Bitcoins. It really isn't that complicated.
Frankly, it is absolutely incredulous to me that you don't understand all of this already, and well enough to explain it in a straightforward manner without sounding like you are intentionally discouraging third-party sales. If you don't, perhaps you should consult some more with your overpriced lawyers.