http://www.coinflation.com/is_it_illegal_to_melt_coins.html
Where does it say that you can melt coins? Well, that's part of the problem. It doesn't say anywhere that the U.S. government is ok with this. But, go to the U.S. Mint web site and search for "illegal". You'll get this result:
1. Is it illegal to damage or deface coins?
Section 331 of Title 18 of the United States code provides criminal penalties for anyone who fraudulently alters, defaces, mutilates impairs, diminishes, falsifies, scales, or lightens any of the coins coined at the Mints of the United States. This statute means that you may be violating the law if you change the appearance of the coin and fraudulently represent it to be other than the altered coin that it is. As a matter of policy, the Mint does not promote coloring, plating or altering U.S. coinage: however, there are no sanctions against such activity absent fraudulent intent.
The keyword is fraudulent. When you take a 25 cent piece and try to pass it off as a Sacajawea Dollar, that's fraud. When you take a Buffalo Nickel, and scratch out one of its legs and try to sell it as a rare collectible, that's also fraud. But when you melt a pre-1982 cent, and sell it for its copper value, that's genuine and legal (visit coinflation.com to see today's coin values and likely candidates for melting).
Also, silver refiners have been melting coins for decades. Precedent is on your side.
I did a search and though google thinks it is illegal, most sources fall back to the fraudulent wording. There is nothing fraudulent about making makome out of them. Interestingly, it does appear that the wording is not so loose on bills as they are a note of debt.
I would think the US Treasury would have better things to do than take me in over it. But, anymore I would not be surprized by anything. In light of my search I will still do it.