Originally Posted by Blameless
Everything is legal, until a law is made that says otherwise.
Anyway, I think this statement refers to the fact that native tribes don't, according to US law, have the ability to print and issue currency, not that cryptocurrencies themselves are illegal. Not that the Lakota should care either way.
Yes initially everything is legal by default. Say if someone made a device that would get you high by electrocuting you in a certain way. I'm pretty sure we have no rules about that, so yes its legal. But if there was a law that says that hallucinogens are illegal and that it could be defined as a hallucinogen, then it would be illegal.
As for the whole crypocurrency being illegal part, FinCEN lists out scenarios for which they regulate the transactions.
This is how I
If I were to give you a bitcoin for a weapon in WoW, they dont care.
If you trade a bitcoin to a litecoin, same thing they dont care.
If you trade a bitcoin for a car, they dont care about you, but they have regulations for the person selling it.
If you trade a bitcoin for $100, then (i think) they have regulations on both sides.
So, creating your own currency is perfectly legal, converting it to something useful has regulations. I dont know anything about the rules or regulations, but its probably the same stuff that banks need to follow.
This all makes me think about the whole online gambling stuff. I can gamble a token , we can trade tokens and no one cares, but as soon as they move money from one bank to another for this currency, that's when the government says no... that's still gambling.