But that's essentially what they have done to U.S residents living in Texas (likely more states to come). Yes; they can't stop Bitconnect from paying out (for now), but what is going to happen when the loan period expires and capital is returned? The returned capital will be the final payout. No more lending = no more paying out. Thus, the government successfully severs U.S. residents from Bitconnect.

On the positive side, this is now an opportunity for Bitconnect to prove itself. If it's not a scam, then they should do whatever they have to do to comply with the states to continue doing business with U.S. residents. If they do that, most of the FUD directed at Bitconnect will be put to rest.

If they don't make an effort to comply, then that should give people all the more reason not to trust Bitconnect.