The lack of crypto regulation in the United States has lengthy difficult the lives of customers and repair suppliers, and now a judge has acknowledged the ache the judiciary additionally feels from its absence. Chief United States Bankruptcy Judge Martin Glenn, the judge who’s main the Celsius case, mentioned the court will look overseas for guidance in the case.
Glenn wrote in an Oct. 17 submitting in the Celsius case:
“Many, or pe[r]haps most, cases involving cryptocurrency may raise legal issues for which there are no controlling legal precedents in this Circuit or elsewhere in the United States or in other countries in which cases arise.”
However, the court may contemplate the 529-page “Digital Assets: Consultation Paper” printed by the Law Commission of England and Wales in the Celsius case in the long run, because the doc addresses “many legal issues arising in cases involving digital assets.”
Judge Glenn, who oversees #Celsiusbankruptcy, filed a letter saying as a result of there may be usually no authorized priority for crypto in the US, the court may refer to the UK’s “Digital Assets Consultation Paper” for guidance.
Paper: https://t.co/1n380Rh0u8 pic.twitter.com/WhkO8p4Id7
— Amy Castor (@ahcastor) October 17, 2022
The judge famous: “Legal principles that are applicable in the United Kingdom are not binding on courts in the United States,” however mentioned these ideas “may be persuasive in addressing legal issues that may arise in this case.”
The paper was launched on July 28 and isn’t legally binding in the United Kingdom. It incorporates provisional legislation reform proposals and it’s open to feedback by means of Nov. 4. It suggests crypto property as a brand new “category of personal property.”
Related: Celsius chapter proceedings present complexities amid declining hope of restoration
Crypto lending platform Celsius filed for chapter on July 13 after halting withdrawals on June 13. Due to the complexity of the case, the United States trustee dealing with the case requested for an impartial examiner to “untangle” Celsius’ funds and enterprise operations and assess accusations towards Celsius of incompetence and mismanagement.
FTX head Sam Bankman-Fried, who earned the moniker of “banker of last resort” throughout the current crypto market meltdown, has promised to “take a look” at Celsius however has not taken another motion.