UK High Court Declares Tether USDT Stablecoin as Property

In a significant move for the digital asset industry, the High Court of Justice in England has officially recognized Tether’s USDT stablecoin as property. This ruling marks an important step as the UK continues to define and solidify property rights for digital tokens.

Just a day before, a new bill was presented in the UK Parliament to recognize all forms of cryptocurrency as property, ensuring legal safeguards for digital asset holders across the country. England is now building on this effort, with the designation of USDT, the largest stablecoin by market capitalization, as property.

The push for clearer regulations in the cryptocurrency space has been a crucial effort for a long time. The sector has often faced uncertainty due to a lack of clear legal standards, which has, in turn, hindered the full realization of its potential. However, as 2024 progresses, there is a noticeable shift towards clearer regulatory frameworks as these assets continue to gain prominence.

Recent legal developments indicate a changing perception of digital assets. Notably, the High Court in England has ruled that Tether’s USDT should be regarded as property. This decision follows the introduction of UK legislation that aims to classify cryptocurrencies as personal property.

In a recent court statement, Deputy High Court Judge Richard Farnhill stated, “USDT attracts property rights under English law.” He further clarified that USDT “can be the subject of tracing and can constitute trust property in the same way as other property.”

This ruling supports the new legislative efforts to categorize cryptocurrencies as property, although it differentiates them from traditional assets. For example, while not considered a “thing in possession” like physical money or a “thing in action” like shares, it is still recognized as property.

The decision is a milestone for the digital asset sector, highlighting the need to recognize cryptocurrencies as a distinct form of property. It represents not just a new type of asset but an evolving concept of finance in the modern world.

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