Slashdot Mirror
Federal Judge Declares Bitcoin a Currency
tlhIngan writes "An East Texas federal judge has concluded that Bitcoin is a currency that can be regulated under American Law. The conclusion came during the trial of Trendon Shavers, who is accused of running the Bitcoin Savings and Trust (BTCST) as a Ponzi scheme. Shavers had argued that since the transactions were all done in Bitcoins, no money changed hands and thus the SEC has no jurisdiction. The judge found that since Bitcoins may be used to purchase goods and services, and more importantly, can be converted to conventional currencies, it is a form of currency (PDF) and investors wishing to invest in the BTCST provided an investment of money, and thus the SEC may regulate such business."
You're taking advice from someone who stared in a movie called "Bed time for Bonzo" where he literally got out-acted by a monkey. A man who's administration set in motion all of the major changes that lead to the last big financial collapse.
It's also worth noting that in Bitcoin's short life it's been party to all of the major scams and fraud schemes that always crop up when regulation is lax. Every one.