Why isn’t an escrow model like LocalBitcoins typically treated as a money transmitter/MSB in many US states?

It is considered a money transmitter in most US states, and outside the US depends on which country you’re talking about.

In the US for example, if you exceed certain limits you would be classified as a money transmitter and if your role is that of an intermediary, even more so. You have to look at the BSA and state guidelines on this.

Interesting video to watch:

https://www.youtube.com/watch?v=...