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Bitcoin Goes Legit, but What's the Catch?

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On Monday, the US Senate held its first ever hearing on Bitcoin, the virtual currency with a gross value of billions and an outlaw reputation.

Full CSPAN video here:

Despite links to black markets like the Silk Road, Bitcoin isn't itself illegal - but financial regulators say that virtual currency operators must play by the rules. So what are those rules, and will Bitcoin survive the changes? Finally, should Bitcoin users be entitled to privacy in online transactions?

Past coverage:

Cops Cracking Down on Buying Illegal Drugs Online
Is Bitcoin a Legitimate Form of Currency?
Is Bitcoin a Bubble?
Bitcoin Crackdown on the Horizon?

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