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Bitcoin [BTC] qualifies as ‘money’ and ‘funds,’ rules US District Court for the Eastern District of Michigan

Jibin M George

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Bitcoin [BTC] qualifies as 'money' and 'funds,' rules U.S District Court for the Eastern District of Michigan
Source: Pixabay

In news broken by Stephen D Palley, a Washington DC-based lawyer, a Federal Court in the US State of Michigan has passed down a ruling that says Bitcoin [BTC] constitutes money. The development marks a positive step towards the wider adoption and recognition of cryptocurrency in the public sphere.

Palley is a partner at the law offices of Anderson Kill and is also the co-chair of the firm’s Blockchain and Virtual Currency Group. The ruling was made by the Southern Division of the US District Court for the Eastern District of Michigan over a case where the defendant was charged with a money laundering scheme involving hundreds of thousands of dollars worth of Bitcoin.

In the aforementioned case, the defendant had been charged with facilitating the trade of Bitcoins without having registered with the State as a money transmitter. However, the defendant contrarily argued that any such question of registration as a money transmitter was unwarranted as Bitcoins didn’t qualify as money under the federal statute 18 U.S.C. § 1960. The statute concerns itself with unlicensed money transmission.

Using the statute’s definition of money as anything that is considered and used as a medium of exchange, a measure of value and means of payment, the Court, based its ruling on previous Federal Court cases such as United States v Murgio and United States v. Feialla and unambiguously stated that Bitcoin qualifies as money.

To support its ruling, the Court also relied on the interpretive guidance issued by the Financial Crimes Enforcement Network, a wing of the US Treasury. Under the said guidance, the defendant’s actions of facilitating the movement and trade of Bitcoins are considered to be acts of ‘money transmission’. The FinCen guidance is also one that considers any virtual currency, including Bitcoins, as money, lending weight to the Court’s ruling. The guidance, although not carrying the force of law, is nonetheless persuasive, the Court stated.



Judge Victoria Roberts of the Court finally also ruled that the rule of lenity, a rule that asks the Court to rule in favor of the defendant if the law is ambiguous, is not applicable as the statute in question is very clear to the Court’s mind.

The present ruling comes in the middle of a wave of actions taken by states across the United States to make way for cryptocurrencies and blockchain technology. The State of Wyoming had only a few days ago, passed a bill in the House that recognized Bitcoin and other cryptocurrencies. A similar bill has also passed the House sub-committee in the state of New Hampshire.





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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

Daily Crypto News – May 25

1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.

Read more at https://bit.ly/2VRQwb0

2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.

Read more at https://bit.ly/2W40sTR

3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.

Read more at https://bit.ly/2X6fdlw

4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.

Read more at https://bit.ly/2McaTjE

5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.

Read more at https://bit.ly/2wmk4mJ

6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.

Read more at https://bit.ly/2HUEnNB



7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.

Read more at https://bit.ly/2W64KKj





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