Peer-to-Peer Rights Fund
= "aims to support various legal efforts, including subsidizing defense counsel, sponsoring amicus briefs in pivotal cases, and financing affirmative impact litigation to set favorable legal precedents".
URL = https://p2prights.org/
Description
1.
"The Peer-to-Peer (P2P) Rights Fund has been announced, with a mission to defend non-custodial tools and developers against regulatory overreach. David Zell, co-founder of the Bitcoin Policy Institute, declared the fund's establishment, emphasizing its role in preserving the peer-to-peer integrity of Bitcoin.
The P2P Rights Fund aims to support various legal efforts, including subsidizing defense counsel, sponsoring amicus briefs in pivotal cases, and financing affirmative impact litigation to set favorable legal precedents. Additionally, the fund plans to offer free or subsidized regulatory advice to developers working on non-custodial Bitcoin tools.
The initiative is in direct response to recent legal actions that have raised concerns within the Bitcoin community. Developers of non-custodial tools, such as hardware wallet creators and transaction node operators, are increasingly being treated as financial institutions, which is seen as a fundamental misunderstanding of the technology by the government. The broad interpretation of the Bank Secrecy Act, which could impact miners and other participants in the Bitcoin network, has also been criticized.
The P2P Rights Fund's first project involves the defense of Keonne Rodriguez and William Lonergan Hill, the founders of Samourai Wallet, who have been indicted on charges of conspiracy to commit money laundering and operating an unlicensed money services business. The prosecution's classification of Samourai's non-custodial coinjoin tool as a money service business is a threat that could set a harmful precedent for the entire Bitcoin ecosystem.
Zell pointed out the critical importance of this case, stating, "By defending this case, the fund aims to ensure the court understands the technology and legal principles at stake, and seek a favorable result establishing that non-custodial privacy tools cannot be regulated under the Bank Secrecy Act."
The outcome of Rodriguez and Hill's case is anticipated to have significant implications for the future of non-custodial Bitcoin tools and the broader decentralized finance landscape. The P2P Rights Fund's involvement underscores its commitment to upholding the principles of decentralization, user autonomy, and privacy, with the goal of fostering innovation within a fair and just legal framework."
2.
"The P2P Rights Fund is a project housed within the Bitcoin Policy Institute, a 501(c)3 think tank. An advisory board including open-source developers, human rights activists, and lawyers oversees the fund’s activities.
Guiding Principles:
- Non-Regulation of Non-Custodial Tools as Financial Services (aka “No MSBs without Keys”)
Development, maintenance, and enablement of non-custodial tools should not be regulated as “money transmission” or “money service business” under US law.
This principle protects software developers, frontend providers, nodes, mining companies, coinjoin coordinators, and any other ancillary actors that facilitate the use digital assets without taking custody of those assets, exempting them from the Bank Secrecy Act. Additionally, no individual key holder in a multi-signature wallet should be considered as having “custody” of the funds in that wallet unless they have the unilateral ability to move those funds.
- Protection of Open-Source Software under the First Amendment
The publication of open-source code for non-custodial Bitcoin tools is categorically protected by the First Amendment of the US Constitution, ensuring it remains immune from legal interference or censorship.
- Constitutional Rights to Use and Transact Bitcoin
The right for Americans to self-custody bitcoin and to transact in a sovereign and private manner is fundamental, potentially protected by the First, Fourth, Fifth, Ninth, and Fourteenth Amendments of the US Constitution. Any regulatory or governmental actions that unduly burden these rights should be vigorously contested and overturned in court. The litigation fund will proactively intervene in any legal proceedings where these guiding principles are at risk. Our strategy includes not only defending against unfavorable legal actions but also initiating cases that offer the best prospects for cementing these principles in law.
Moreover, we will collaborate with companies developing open-source non-custodial products to ensure that their innovations align with existing regulations while advocating for their rights under these principles. By combining legal action with strategic partnerships, the fund aims to foster a secure and thriving environment for non-custodial Bitcoin tools, ensuring they can operate effectively and without undue regulatory burden."
(https://p2prights.org/about.html)