I'm new here, but I want to make the law clear for everyone since this website is such a popular resource.

FinCEN guidence from October of 2014 (2 links, applies to all of the USA):

http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R011.pdf

http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R012.pdf

"The Guidance makes clear that an administrator or exchanger of convertible
virtual currencies that accepts and transmits a convertible virtual currency, or buys or
sells convertible virtual currency in exchange for currency of legal tender or another
convertible virtual currency for any reason is a money transmitter under FinCEN's
regulations..."

In English, I read this as saying the following:  Selling Bitcoin for Cash makes you a money transmitter.  Accepting a Check, Money Order or another virtual currency is NOT a loophole you can exploit in order to get around being a money transmitter.  Acting as a payment intermediary in which you accept Cash, send Bitcoin to a 3rd party, and having that 3rd party transmit services to your customer makes you a money transmitter.  It is very difficult to structure your business using Bitcoin and not be classified as a money transmitter.  The only way I can see anyone legally using Bitcoin, based on this guidance and without having a Money Transmitter license, is to send Bitcoin in exchange for goods and services which you must personally obtain.  You may spend Bitcoin at NewEgg for a graphics card, obtain that graphics card, then sell that graphics card for cash.  You cannot, however, pay with Bitcoin for that graphics card to be sent to a customer and then accept cash as compensation.  This may even be crippling to those offering Bitcoin to remedy randsomeware problems as you never personally receive any form of services for the Bitcoin sent.