Judge Celsius says court could look at UK consultation paper if no US guidelines

Judge Martin Glenn says UK legal principles can be "persuasive" in the absence of US legal precedents in the case crypto lending platform bankruptcy complex.

The lack of crypto regulation in the United States has long made life difficult for users and service providers, and now a judge has acknowledged the pain the justice system is also feeling due to its absence. U.S. Chief Bankruptcy Judge Martin Glenn, the judge leading the Celsius case, said the court will look overseas for advice in the case.

Glenn wrote in an October 17 filing in the Celsius case:

"Many, or perhaps most, cases involving cryptocurrency may raise legal issues for which there are no compelling legal precedents in this circuit or elsewhere in the United States or in other countries in which cases occur."

However, the court may consider the 529-page "Digital Assets: Consultation Paper" issued by the Law Commission of England and Wales in the Celsius case in the future, as the document discusses "numerous legal issues related to cases involving assets."

Judge Glenn, who oversees #Celsiusbankruptcy, filed a letter saying there is often no legal precedent for crypto at United States, the court may refer to the United Kingdom's "Digital Assets Consultation Paper" for guidance. — Amy Castor (@ahcastor) October 17, 2022

The judge noted, "Legal principles which are applicable in the United Kingdom are not binding on courts in the United States," but said those principles "may be persuasive in dealing with legal questions...