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If you execute on this plan, you are probably an unlicensed MSB. If you don't know what that means, don't execute on this plan until you do.

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What's the process to becoming a licensed MSB? Is it possible to test this method out, w/out becoming licensed to make sure that it can in effect bring in revenue?

I'm planning on doing a proof of concept - less than $100 a day.

IANAL but...

"the term “unlicensed money transmitting business” means a money transmitting business which affects interstate or foreign commerce in any manner or degree".

If you keep your trades to people within your state, I don't see how you'd be breaking the law here.

Have a look at Wickard v. Filburn

I believe you to have a much narrower interpretation of interstate commerce than Uncle Sam does, but be that as it may, there are (at least) four parties to the transaction: you, your counterparty, your bank, and Coinbase. Do you think it is likely that all of them are in California and only California?

You're also picking at one thread of a regulatory tapestry. Even if you are successful, there are a lot more threads.

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