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IN THE MIDST OF BANKRUPTCY: HOW CRYPTOCURRENCY'S CLASSIFICATION AFFECTS CREDITORS WHO WERE ONCE CUSTOMERS.
- Source :
- Washington Law Review. March, 2024, Vol. 99 Issue 1, p323, 37 p.
- Publication Year :
- 2024
-
Abstract
- INTRODUCTION "Cryptocurrency is a good idea on many levels," (1) tweeted Elon Musk, "and we believe it has a promising future." (2) At first, he was right. Cryptocurrency prices reached [...]<br />In 2022, Congress proposed the Digital Commodities Consumer Protection Act to amend the Commodity Exchange Act and define a new type of commodity: digital commodity. The definition of digital commodity encompasses cryptocurrency and provides the Commodity Futures Trading Commission with jurisdiction over digital asset transactions. This definition of digital commodity has two important implications. First, it signals the lawmakers&apos; tendency to generalize cryptocurrency as a commodity. Second, it brings complications into how creditors--especially individual crypto account holders-- can recover in the recent bankruptcy cases involving prominent crypto companies. This Comment contains four components. First, it provides a brief explanation of cryptocurrency and its underlying mechanism. Second, it reviews the debate over cryptocurrency&apos;s classification as a commodity versus as a security. Third, it presents an overview of the bankruptcy system and the effect of a bankruptcy discharge. Finally, this Comment argues that generalizing cryptocurrency as a commodity limits the ability of creditors--especially cryptocurrency account holders, who are often individual consumers--to seek recovery outside of bankruptcy. This Comment aims to bring the interests of consumer creditors to the attention of judicial and legislative bodies.
- Subjects :
- Equity (Law) -- Laws, regulations and rules
Exceptions (Law) -- Laws, regulations and rules
Crypto-currencies -- Laws, regulations and rules
Bankruptcy reorganizations -- Laws, regulations and rules
Futures -- Laws, regulations and rules
Securities law -- Evaluation
Federal jurisdiction -- Laws, regulations and rules
Commodities -- Laws, regulations and rules
Bankruptcy discharge -- Laws, regulations and rules
United States. Securities and Exchange Commission -- Powers and duties
United States. Commodity Futures Trading Commission -- Powers and duties
Government regulation
Company bankruptcy
Bankruptcy Code of 1978 (11 U.S.C. 1121) (11 U.S.C. 1126) (11 U.S.C. 523(a)(19))
Digital Commodities Consumer Protection Act of 2022 (Draft)
Commodity Exchange Act
Executive Order on Ensuring Responsible Development of Digital Assets
Subjects
Details
- Language :
- English
- ISSN :
- 00430617
- Volume :
- 99
- Issue :
- 1
- Database :
- Gale General OneFile
- Journal :
- Washington Law Review
- Publication Type :
- Academic Journal
- Accession number :
- edsgcl.793396656