KEY POINTS
- NYDIG founder Ross Stevens presented strong cases on why Bitcoin is speech and thus protected by the First Amendment
- He argued that even Bitcoin mining should be protected by the Amendment as it is ‘expressive conduct’
- He said the Bitcoin Network, instead of just a network of BTC users, is an ‘expressive association’
Bitcoin, the world’s largest cryptocurrency by market value, is still the most popular digital currency more than a decade since it was first introduced by pseudonymous creator Satoshi Nakamoto.
While it has empowered many unbanked individuals and forward-looking enthusiasts to engage in finance, it has also been plagued by concerns regarding its legal status as well as the regulatory uncertainty in the industry.
A new paper by Ross Stevens, the founder and executive chairman of full-stack Bitcoin platform NYDIG, argues that “Bitcoin is speech and therefore, protected by the First Amendment.”
In What Way is Bitcoin Protected?
According to Stevens, BTC is a platform where users communicate value and other information “including vast amounts of highly expressive content,” which means that engaging with the digital coin involves speech protected by the First Amendment.
“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances,” the U.S. Constitution states.
Stevens noted that Bitcoin constitutes a “highly communicative” community that has dedicated itself to freeing itself from government fiat. “It offers the sort of promise and opportunities that have prompted government jealousy from time immemorial. For these very reasons, the First Amendment implications of Bitcoin cannot be ignored,” he wrote.
He noted the following aspects of Bitcoin make it a form of “speech” and are thus protected by the First Amendment:
- Constant communication – BTC participants need to communicate constantly (users make transactions, miners review transactions and verify them, etc.)
- A medium for expressive content – Bitcoin has been used to “inscribe” messages on the blockchain, whether political, religious, or artistic content
- Hard-coded political values – The world’s first decentralized digital currency is “pro-individual liberty and anti-censorship,” and encodes strong private property rights
The Case of Bitcoin Mining
Stevens presented a strong case for why the use of Bitcoin can be protected by the First Amendment. How about Bitcoin mining – the cornerstone of the BTC network and the heart of the broader crypto industry?
According to Stevens, the government or regulators may argue that BTC mining is an “economic activity” and thus cannot be protected by the law. However, Stevens argued that instead of an economic activity, mining Bitcoin is “expressive conduct,” citing several court cases wherein the Supreme Court agreed that some conduct is protected by the First Amendment depending on their purpose (conveying a particular message).
“In transferring and mining Bitcoin, many individuals, including the author of this paper, aim to send a political message of protest against the status quo of governmental monopolies over money and to signal support for an alternative, decentralized currency,” he wrote.
The Case of ‘Expressive Association’
Stevens emphasized that the Bitcoin network is “an expressive association” and is protected by the First Amendment. He cited a specific case wherein the court ruled that the First Amendment isn’t limited to protecting advocacy groups but those that “engage in some form of expression, whether it be public or private.”
He then concluded that BTC implicates the First Amendment “and therefore, regulating Bitcoin has clear constitutional implications.”
A Show of Support from Key Bitcoiners
Michael Saylor, the executive chairman of MicroStrategy and a well-known BTC maximalist, shared Stevens’ paper on X.
Prominent crypto writer Aleksandar Svetski said Stevens’ arguments are “very, very powerful,” while lawyer and Bitcoin advocate Justin Wales said he has written about Bitcoin’s protection under the law for years. Stevens cited Wales’ law review article multiple times in the paper.
Hoseki App CTO Cory Wilbur said the NYDIG paper should be a call to action for the community to “challenge these unjust regulations against Bitcoin.”
This is an interesting argument for Bitcoin being free speech and, therefore, regulations against it going against the First Amendment.
You usually will hear:
“Bitcoin should be apolitical.”
Ross Stevens, however, disagrees.
He argues — quite thoroughly — that running… https://t.co/ivYjOq0kz6
— Cory Wilbur (@cwilbzz) September 26, 2024
Bitcoin has had its ups and downs, especially with many basing its success on short-term price volatility, but for many “hodlers” and maximalists, it is a revolution, a movement, a catalyst for change, and the future of finance.
