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

Share This Post

Judge Martin Glenn says U.K. legal principles may be “persuasive” in the absence of U.S. legal precedents in the complex case of the crypto lending platform’s bankruptcy.

The lack of crypto regulation in the United States has long complicating the lives of users and service providers, and now a judge has acknowledged the pain the judiciary feels from its absence too. Chief United States Bankruptcy Judge Martin Glenn, the judge who is leading the Celsius case, said the court will look abroad for guidance in the case.

Glenn wrote in an Oct. 17 filing in the Celsius case that:

“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 consider the 529-page “Digital Assets: Consultation Paper” published by the Law Commission of the U.K. and Wales in the Celsius case in the future, as that document addresses “many legal issues arising in cases involving digital assets.”

The judge noted that: “Legal principles that are applicable in the United Kingdom are not binding on courts in the United States,” but said those principles “may be persuasive in addressing legal issues that may arise in this case.”

The paper was released July 28 and is not legally binding in the United Kingdom. It contains provisional law reform proposals, and it is open to comments through Nov. 4. It suggests looking at crypto assets as a new “category of personal property.”

Related: Celsius bankruptcy proceedings show complexities amid declining hope of recovery

Crypto lending platform Celsius filed for bankruptcy on July 13 after halting withdrawals June 13. Due to the complexity of the case, the United States Trustee handling the case asked for an independent examiner to “untangle” Celsius’ finances and business operations and assess accusations against Celsius of incompetence and mismanagement.

FTX head Sam Bankman-Fried, who has earned the moniker of “banker of last resort,” during the recent crypto market meltdown, has promised to “take a look” at Celsius, but has not taken any other action.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Why is Bitcoin Price Down Today?

The post Why is Bitcoin Price Down Today appeared first on Coinpedia Fintech News Bitcoin is currently down by more than two percent, trading slightly below the $90k mark It is currently experiencing

Cameron Winklevoss Emphasizes The Importance Of DOGE Initiative, Says It Could Reduce Inflation

The post Cameron Winklevoss Emphasizes The Importance Of DOGE Initiative, Says It Could Reduce Inflation appeared first on Coinpedia Fintech News US President-elect Donald Trump recently announced

Bitcoin MVRV Hits Critical Threshold For Profit Taking – What Does This Mean?

Bitcoin recorded another remarkable price performance in the past week, gaining by 1916% according to data from CoinMarketCap The crypto market leader established a new all-time high at $93,434 on

Renowned Investor Jim Rogers Warns ‘America First’ Policy Will Trigger ‘Biggest Recession Ever’

Jim Rogers warns Trump’s “America First” trade policies could ignite the “biggest recession ever,” fueled by spiraling US debt, inflation, and trade restrictions Jim Rogers

XRP Lawsuit News: Analyst Opposes Case Dismissal, Seeks Clarity from SEC Instead

The post XRP Lawsuit News: Analyst Opposes Case Dismissal, Seeks Clarity from SEC Instead appeared first on Coinpedia Fintech News The ongoing Ripple case could be dismissed by the SEC, especially in

Crypto enforcement to take a back seat under Trump as immigration becomes priority

Republican President-elect Donald Trump promised to ease up crypto enforcement during his campaign And that’s what’s going to happen as Trump resets policy at the Justice Department and