Bitcoin Forum

All,

(Please do not move this thread to the legal section)

My name is Matthew Elias and I am part of a small group of law students forming a Cryptocurrency Legal Advocacy Group (CLAG). The directors of this group are students at the University of Mississippi School of Law, and are studying to become full fledged attorneys. We are in the process of including students from other law schools in the U.S. and around the world. This idea is loosely based on https://bitcointalk.org/index.php?topic=49841.0

We have setup a preliminary site at http://www.theclag.org/ and are in the process of becoming a Mississippi Non-Profit Corporation (501(c)3, and registered MS charity).
Our incorporation documents can be found here and will be updated upon approval from the MS SOS:
http://www.pdfhost.net/index.php?Action=Download&File=8469b84eb1cf0623690f667abfe41503

To clarify, we have more than a year to register as a 501(c)3, and that form is a bear, so I will keep everyone apprised of progress on that.

This work is being carried out under the guidance of Prof. Mercer Bullard. Prof. Bullard is one of the foremost securities law experts in the world. http://www.law.olemiss.edu/faculty_profiles/faculty_bullard.html . He is really intrigued by the idea of cryptocurrencies, and supports their continued development and adoption. We are also working to contact Wendy Seltzer of the Tor project and Cindy Cohn of the EFF to see if they would be willing to lend their expertise to this effort.

My vision is for CLAG to become a trusted source of legal news and scholarship related to cryptocurrencies. CLAG will release memoranda on a regular basis assessing legal issues related to cryptocurrencies (most topics will be Bitcoin related). For example, our first memo, which we hope to have up by the end of this week will assess the tax-ability of cryptocurrencies under a relatively standard taxation regime. Our inherent bias will be that of a U.S. perspective, but we will do our best to assess these issues from as jurisdictionally-neutral a perspective as is possible. Topics will be selected at the discretion of the board of directors. We also hope to do a short, quick legal FAQ on cryptocurrencies. CLAG functions to provide clarity, education, and consultation, and is in no way providing legal advice.

I won't go into the misleading and perfunctory legal opinions which have been espoused on this forum, however I will state that CLAG will strive to be an objective source of information, providing legal clarity on issues surrounding cryptocurrencies.

Questions:

Q: Don't other organizations exist which can take on this exact issue?
A: Maybe. CLAG is positioned as the first-mover in this area. If someone comes along and is able to do it better then so be it.

Q: How can anyone trust law students with such an important issue?
A: This question raises several points. First, attorneys will certainly shape the law in this area by choosing certain arguments, and winning and losing on them. As it exists now however, there is not a great deal of litigation or adjudication happening with cryptocurrencies. To my second point then, because these questions are largely academic, abstract, and metaphysical in nature, unpaid law students are in a great position to tackle them. The risk facing an attorney considering taking on a Bitcoin related case can be untenable, and thus again, the unpaid research of students can be of great value.

Q: How are donations used?
A: Down the road, donations could be a vehicle for a legal fund for actions brought against developers or large miners (maybe). I think in the immediate term though, holding the worlds first cryptocurrnecy legal conference, and attempting to encourage as much scholarship on this issue as possible would be the most beneficial use of funding. Recouping the small amount of overhead is another obvious use.

Q: What if donations go to some bogus cryptocurrency?
A: Consistent with our public purpose, I don't see this as likely. Ear-marked donations may be an option in the future, but right now we are essentially using the terms bitcoin and cryptocurrency synonymously. I also think that it is clear that other cryptocurrencies may arise in the near future. And while they may not ever reach the stature or ubiquity of bitcoin (but... they may), they will undoubtedly share many of the same legal issues.  

Q: Why are there only four directors listed on your site when your bylaws require five.
A: We are in the process of filling the vacancy.

Q: Isn't this just centralizing something to its detriment?
A: This is a legitimate concern, and CLAG recognizes the importance of decentralization to all cryptocurrencies. The interplay between cryptocurrencies and various legal systems and jurisdictions is one of the few places from which I think projects can benefit from some centralization. Time will tell if centralized legal advocacy is what brings down cryptocurrencies.




Just to reiterate, I know its not much to look at right now, but we will have our first memo up by the end of this week and more to follow. I will be glad to answer any questions that are not answered by the incorporation docs or the answers above. We also need a logo if anyone is interested. You can donate to CLAG at:
1LkJBaMURdB6bWA6DRFeDoYyYJzsXLhtG8



Matthew Elias
Cryptocurrency Legal Advocacy Group

First memo is up. We will be on a brief hiatus until early-mid May due to exams. Please refer back here for upcoming topics.
CM (CLAG Memorandum)

CM#1001 - 4/15/12 - Staying Between the Lines: A Survey of U.S. Income Taxation and its Ramifications on Cryptocurrencies
http://www.theclag.org/cm1001/ (http://www.theclag.org/cm1001/)

CM#1002 - 5/27/12

CM#1003 - 6/10/12

CM#1004 - 6/24/12

CM#1005 - 7/8/12

CM#1006 - 7/22/12

CM#1007 - 8/5/12

CM#1008 - 8/19/12

CM#1009 - 9/2/12


We will also be working on providing other content in the form of legal news and commentary implicating cryptocurrencies in the interim.

reserved

I wish you and group luck on your venture! It's definitely something the community has needed for a long time.

A reminder to everyone that Matthew Elias is the one behind the October 2011 paper "Bitcoin: Tempering the Digital Ring of Gyges or Implausible Pecuniary Privacy"
https://bitcointalk.org/index.php?topic=40783.0

I think the Cryptocurrency Legal Advocacy Group is a great idea - donated!

I am looking forward to your views on bitcoin (including if bitcoin is a commodity or not.)  I hope you guys can win some legal battles for us.

Sounds great.


How are you doing this? Are there some popular law student forums that you can solicit members on?

Is there a danger that by having law student form and run this that established lawyers will be disinclined to join? Is there any precedent for legal advocacy groups founded and fun by students?

We are doing this primarily through contacting Law and Technology Journals and inquiring as to whether any of their members are interested in participating. We are also reaching out to career services offices. If there are law student forums I do not know of them.


That is not a danger. Two licensed U.S. attorneys (in MS and D.C.) have already helped tremendously with this effort. Further, students do not remain in a static state. For instance, I will be graduating in 7 months and will no longer be a student. The extent to which this remains a student org. in years to come remains to be seen. I do not think that a student org. qua student org. disincentivizes licensed attorneys from participating.

There are numerous legal advocacy groups similarly positioned all over the country and the world.

As I told Matthew when I spoke with him a couple of weeks ago, I also think this is a fantastic idea and plan on helping the CLAG however I can. Legal and regulatory uncertainty is perhaps the biggest barrier for companies who might be thinking of launching projects involving Bitcoin, and having a reliable source of up-to-date accurate information about the issues will be incredibly valuable.

Hopefully in a couple of years the CLAG's biggest problem will be figuring out what it's role should be as similar groups, inspired by the CLAG, spring up all over the world to tackle the unique legal issues in each country.

*holds nose and subscribes*
Yay! This is a great idea until someone someday comes up with a decentralized form of law.  ;)

+1, know that at least 50% of my idle thought is spent considering this

I'm waiting for the obligatory "Here's another Matthew trying to start an organization" jokes. Goons? Are you sleeping?

It already exists. It's called physical reality.

Initiatives like this one is what Bitcoin needs now. Technically speaking Bitcoin works, and has been subject to and survived lots of technical scrutiny. Addressing legal uncertainty is the next big step, and is a prerequisite for serious business development and growth of Bitcoin economy.

I wish you the best of luck on this!

Being an business owner and an MSB in the US, myself along with most of the Bitcoin Business Owners deal with legalities and compliance on a daily basis.

We even have our own legal team who've spent hours and hours of research. I'm not the only one who's doing this.

Let's get in touch, and see how we can both help each other.

There is a lot to gain, and as my grandfather said 'Knowledge is no good unless it is shared generously onto others'

-Charlie

My grandfather said that too. He was shot for espionage.

My grandpa's life was a little better then that  ;D

This is really good to bitcoin.

I am sure all BTC-related businesses have already spent considerable resources on legal aspects. It would be a shame if conclusions and findings of all this effort remained fragmented and hidden. Perhaps a good first step for CLAG would be to get in touch with as many BTC businesses as possible and compile and publish relevant legal adventures to date. The next step would then involve coordination of future efforts, advocacy, and general PR.

Yup, I agree.

If you see my post above, I wrote the same thing. Personally, we have spent thousands on legal research

Agreed. We are in contact with many of these businesses and hope to collaborate with them for the benefit of the community.

Yankee, PM me or add me on skype matt_elias

Very cool.  Watching.

A very interesting development and potentially a great benefit to Bitcoin. Looking forward to seeing this progress.

+1

This is great for Bitcoin!

<off-topic>

There have been historical examples of decentralized law and justice, and there are modern authors who write about how it could apply to nowadays societies.
</off-topic>


OP, great initiative. I wish you success, and hope you create an example for other institutions of the same kind worldwide.

Update: We are working very hard to have a substantial piece complete by this week (or... in 4-6 weeks  ;)). Admittedly we are all very busy and we all have several exams right around the corner. I am working on getting a workflow/deliverables timeline drafted and made public so that we can be held accountable to get this stuff done, especially over the summer. I'm guessing it'll look like a memo every 2 weeks or so. But we will need to feel out the response to this first one.

Check out the second post for a memo schedule and link to our first published memo. Thanks.

Added CLAG to the wiki:
 - http://en.bitcoin.it/wiki/Cryptocurrency_Legal_Advocacy_Group

Thanks for that.


Just to update, it looks like the Mississippi Secretary of State approved our docs without a hitch, so CLAG is now officially an MS non-profit. I will scan and upload them when I get a chance (which may be a week or so from now).

Look for an updated docket of topics on the second post in the weeks to come as well.

The website theclag.org is giving a fatal error:

"<b>Fatal error</b>:  Call to a member function get_feed_permastruct()"

I'm so glad to see that someone is working on legal aspects of cryptocurrencies. That was one of my biggest concern about bitcoin. I'll follow your group closely!

From another thread:


Specifically CM1001 memorandum
 - http://www.theclag.org/cm1001/

All I'm getting is a 404 memorandum!

JDBound:

Here is a site that has collated together some good links to academic works on the monetary economics of free competition in currencies in general. You might need that kind of objective firepower to back the legal arguments, if it goes that far.

http://monetaryfreedom.org/ (http://monetaryfreedom.org/) click on "Resources"

All,

I apologize for the issues with the website. We now have new hosting and will be getting the problem remedied ASAP. Expect more memos in the weeks and months to come. There may also be a conference in the works....

There is a new post up re: the Romney tax return issue.

Also please find the newly available CM#1001.

http://theclag.org/buying-secrets-buying-time-mitt-romneys-tax-returns-and-bitcoin/

New post breaking down yesterdays developments.

http://theclag.org/romney-return-release-update/

Great job guys! Keep going on that way!

Wow there's an idea! could that be done using a blockchain thing - like storing the rules of law in a decentralized way that people all agree is correct?

Here's a working URL for CM1001: http://theclag.org/CM%231001Final.pdf

The link at http://theclag.org/staying-between-the-lines-a-survey-of-u-s-income-taxation-and-its-ramifications-on-cryptocurrencies/ needs to be changed.

Done. Thanks.

You have a big rotten fish to fry - scammer and know ponzyclown pirateat40.
Good luck and don't give up!

Yep! I believe it will be done eventually.
Bitcoin is a perfect tool for direct democracy where people vote for laws with hash-power.
But that should happen when majority of the population starts participating.

On a technical side, I guess the blockchain would include a hash of "the law", while the actual text will be stored somewhere else. Everybody could verify that the text hashes to the value in blockchain.
We would also need some rules on what to do if multiple different hashes get voted in (in different blocks of course).
Maybe select the winner based on the last 1000 blocks or something similar. Interesting times ahead :)

A few new posts.

http://theclag.org/whats-your-bitcoin-strategy/

http://theclag.org/the-plot-thickens-in-the-bizarre-bitcoin-blackmail-caper/

Does this group still exist? Their website is down.