Abstract: This article discusses the fundamental question of whether the state can regulate cyberspace that was raised when the Supreme Court partially invalidated the Communications Decency Act on First Amendment grounds in the 1997 case of Reno v. ACLU. Professor Goldsmith challenges three specific errors made by those who are skeptical as to whether the government can regulate cyberspace: (1) their overstatement of the differences between cyberspace transactions and other transnational transactions; (2) their failure to recognize the distinction between default laws and mandatory laws; and (3) their underestimation of the potential of traditional legal tools and technology to resolve the multijurisdictional regulatory problems implicated by cyberspace.