Celsius judge says court may look to UK consultation paper in absence of US guidance

Celsius judge says court may look to UK consultation paper in absence of US guidance

US crypto regulation has been a problem for users and service providers for a long time. Now, a judge has admitted that the absence of such regulation has also caused pain in the judiciary. The Chief United States Bankruptcy Judge Martin Glenn is the judge in charge of the Celsius case. He said that the court will seek guidance from abroad.

Glenn wrote the following in an Oct. 17 filing to the Celsius case

“Many or most cases involving cryptocurrency could raise legal issues. There are no controlling precedents in this Circuit, in the United States, or in other countries.

The court could consider the 529-page “Digital Assets Consultation Paper”, published by Law Commission of England and Wales in Celsius’s case, in the future. It addresses “many legal questions arising in cases that involve digital assets”.

Judge Glenn, who is responsible for #Celsiusbankruptcy filed a letter stating that there is no precedent for crypto in the US and the court could refer to the UK’s Digital Assets Consultation Paper for guidance. Letter: https://t.co/jqcGfWFYhg Paper: https://t.co/1n380Rh0u8 pic.twitter.com/WhkO8p4Id7
October 17, 2022 by Amy Castor (@ahcastor).

Judge noted that “Legal principles that apply in the United Kingdom do not have binding effect on the United States courts”, but stated that they could be persuasive in addressing any legal issues that might arise in this case.

This paper, which was published on July 28, is not legally binding in the United Kingdom. It includes provisional reform proposals for law and is open for comments until Nov. 4. It proposes crypto assets be considered a new category of personal property.

Related: Celsius bankruptcy proceedings reveal complexities amid declining hopes of recovery

After halting withdrawals from June 13, Celsius, a crypto lending platform, filed for bankruptcy on July 13. The complexity of the case led to the United States trustee asking for an independent examiner who would “untangle” Celsius’ finances and business operations, and evaluate allegations against Celsius of incompetence or mismanagement.

Sam Bankman-Fried is the head of FTX. He was dubbed the “banker last resort” in the crypto market meltdown. However, he has yet to take any action.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Amy Jimenez

Amy Jimenez– Services My name is Amy Jimenez, and I am the main writer behind the" allthetopnews.com" for the ground-breaking and most fragile bits of knowledge into the most recent news in the services sector. I began my voyage of work as an autonomous investment advisor. I had around 4 years of involvement in this field. I am a free soul so; my energy for investigating the world has taken me to the countries over the globe and allowed me to report for a part of the best news affiliations. At present, I am a full-time manager as experienced in the account and began to utilize my capacities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami