I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.
Why? It was already the case that Bitcoin exchanges had to implement Know Your Customer (KYC) for USA.. doesn't sound to me like this is saying anything new in that regard.
These new rulings will affect many merchants also.
I suspect it will take a few days before the realizations sinks in as to what has happened.
Merchants are exempt according to Lawsky. A merchant isn't the same as a payment processor. Why can't the merchants handle the bitcoin and immediately send them to coinbase or bitpay for them to instantly convert it?