I see this as a major threat to general acceptance and doing business in Digital Currencies.
If the regulations are adopted any think like the proposed NY regulations, the compliance costs alone will exclude most small or start up businesses.
I think it  same to assume that the regulatory framework in NY will be  largely copied by other jurisdictions.
I believe the future of this in industry depends on service and infrastructure companies that will support the many legitimate uses of this technology.
All  support Companies of any substance will have to comply to NY Regs.  because of the  legal risk, and the reporting and compliance costs will be too costly for all but a few large and well capitalized firms.
I believe this is the way that Politicians, Government, and main stream Financial Institutions hope to address the perceived threat from Digital Currencies.