I heard about this on irc last night.

I wasn't quite sure what to make of it, felt a little worried, and then I checked Mt.Gox

There was a big drop and then a swift recovery at this news, and we've been fairly steady since. What this means is, that the market (the wisest among us) was spooked for a short time, and then after a little analysis dissmissed it. It's as free a market as there is, and it has spoken.

I also see that this is bitcoin, and the problem is with SR. Sure the site is using bitcoin, but it could just as easily have used USD notes. Are the senators going to look to ban them?

They(the senators) have just given millions of dollars worth of publicity to advertise SR, bitcoin, and that particular business model. Young people(below 40) will see this news and think cool, because it's normal to them. I don't smoke never mind do drugs but is there really anyone here who doesn't have friends in real life that do(illegal drugs, including MJ)?

At least 1/2 of my friends back west do, and I'm not a stoner or party person.

Logistically the state is going to lose, they do not have the resources to ban something that requires so much work to catch a single person, never mind the millions that will use it. When more sites like SR (and it's a when not if) pop up (thanks for giving more people the idea), the numbers will grow to such an extent that the state won't be able to do anything except the odd show bust.

As avoidance techniques and technologies develope these will become increasingly rarer.

I think we can just ignore this and get back to work.

In an unrelated note, I'm releasing a web client for glbse.com today ( a few hours after I fix some site issues).