Bradley attorney Rob Cox was quoted in Roll Call on inconsistent classifications and ill-formed definitions of bitcoin and other digital assets that are being left to the judiciary to sort out. Bankruptcy judges are used to deciding the value of assets, but for cryptocurrencies, defining how much one party is owed gets complicated. It’s an issue that could be alleviated by regulators or lawmakers, but despite numerous efforts, U.S. bankruptcy judges are unlikely to get much guidance.
A legislative solution seems distant, according to Cox. He explained that amending the U.S. Bankruptcy Code, a lengthy and complex process, to address the questions and challenges posed by cryptocurrency does not appear to be a “high priority” for the bankruptcy bar right now. “They seem to be taking a wait-and-see approach,” he said.
The complete article, “Courts, Without Law for Guidance, Setting Value of Crypoassets,” first appeared in Roll Call on January 28, 2020.