I really think the bitcoin economy would benefit a year or two from now if federal regulators "cracked down" on it and required licensing to buy/sell USD for BTC. Why? Restrictions between BTC and USD would foster more BTC based production (natural resources, goods and services) even if costs currently favoured USD production because producers *want* BTC for the long run and can't acquire it anonymously through USD exchanges. Plus BTC thrives wherever people want to do private business *privately.* Conversely, if federal and state drug laws were abolished that would temporarily set back some valued BTC utility. Of course, USD inflation will probably be the final driver for BTC.