We Study Billionaires - The Investor’s Podcast Network TIP284: Bitcoin - Law & Legal Implications w/ Caitlin Long (Bitcoin Podcast)
Feb 23, 2020
In this engaging discussion, Caitlin Long, a Bitcoin legal expert and Wyoming Blockchain Task Force appointee, delves into the evolving legal landscape surrounding digital currencies. She highlights how states like Wyoming are crafting laws to attract Bitcoin companies while navigating the complexities of legal tender definitions. Long explores the potential for the U.S. government to regulate or even ban crypto exchanges, revealing the balance between state rights and federal law. Moreover, she emphasizes the importance of transparency in the industry, particularly regarding proof of reserves.
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Bitcoin Ban Ineffective
- Governments cannot effectively ban Bitcoin due to its decentralized nature and global network effects.
- A US ban would only shift activity elsewhere, impacting price but not functionality.
Legal Tender vs. Money
- Legal tender status, defined by governments, mandates acceptance for debt payment within borders.
- Wyoming grants virtual currencies similar treatment to money, ensuring they are taken free of adverse claims.
Exchange Shutdown Impact
- US exchange shutdowns would primarily shift activity offshore, as most global volume already occurs outside the US.
- This limits the impact of such restrictions.