| Most
importantly,
Bitcoin
currently
operates
in
a
legal
grey
area.
The
federal
government’s
supposed
monopoly
on
issuing
currency
is
somewhat
narrow
and
statutes
that
impose
that
monopoly
do
not
seem
to
apply
to
Bitcoin
due
to
its
digital
nature.
However,
a
bitcoin
may
be
a
“security”
within
the
meaning
of
the
federal
securities
laws,
subjecting
bitcoins
to
a
vast
regime
of
regulations,
including
general
antifraud
rules.
Furthermore,
other
legal
issues
that
have
not
been
analyzed
in
this
paper
are
probably
significant,
including
tax
evasion,
banking
without
a
charter,
state
escheat
statutes,
and
money
laundering.
| Most importantly, Bitcoin currently operates in a legal grey area. The federal government’s supposed monopoly on issuing currency is somewhat narrow and statutes that impose that monopoly do not seem to apply to Bitcoin due to its digital nature. However, a bitcoin may be a “security” within the meaning of the federal securities laws, subjecting bitcoins to a vast regime of regulations, including general antifraud rules. Furthermore, other legal issues that have not been analyzed in this paper are probably significant, including tax evasion, banking without a charter, state escheat statutes, and money laundering.