Two federal cases in New York State could determine the fate of Bitcoin. It could open up bitcoin, and other cryptocurrencies, to being hit with the same regulations that affect stocks and bonds or it could shut down that regulation gateway.
|A Major Court Case Will Decide Whether Bitcoin Can Be Regulated Like Stocks and Bonds|
Federal judges in Brooklyn, New York, are about to rule on the question. In doing so, they could determine whether Bitcoin and other stateless currencies are securities that can be regulated like stocks or bonds. Courts across the country are likely to consult these rulings when considering other cybercurrency cases.
“If it’s not a security, then what is it?” said Peter Henning, a former SEC and Justice Department lawyer who is now a professor at Wayne State University Law School.
In what is believed to be the first criminal case focusing on an initial coin offering, Brooklyn businessman Maksim Zaslavskiy was charged in a case unsealed in November with promoting digital currencies backed by investments in real estate and diamonds that U.S. prosecutors said didn’t exist. The Securities and Exchange Commission also sued.
|Read More at Time.com|