Quoted: Don't forget you're the FFL the BATF will come looking for should the firearm be used in some illegal act. Your buddy can spend $30 and get his own C&R FFL.\
-- Chuck
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100% correct, but a little convoluted.
Not many C&R's used in crimes, I suspect.
With one humongous exception in the early 60's.
But then, it wasn't a C&R yet. (when did C&R licenses begin?)
Imagine walking into 7-11 with an M48 and slapping the bolt closed.
"This is a stick-up MoFo! Don't anyone move or I'll shoot one of you, and possibly another one of you, if you're really slow!"