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Russian Constitutional Court Takes Up Landmark Case on Property Rights for Stablecoins
Russia may soon face a major turning point in its approach to crypto regulation, as the Russian Constitutional Court has begun reviewing a high-profile case that could determine whether citizens have legally recognized property rights over stablecoins, including widely used assets such as USDT (Tether).
The case is being closely watched by legal experts, crypto industry participants, and financial regulators, as its outcome could establish one of the first legal precedents for stablecoin ownership within the country.
Stablecoins Not Recognized as Digital Financial Assets—A Legal Gap
According to regulatory specialists cited by BlockBeats, the core issue stems from the fact that fiat-pegged stablecoins—including USDT—are not classified as “digital financial assets” (DFAs) under current Russian legislation.
They also do not fall under Russia’s rules governing the circulation of “digital currencies,” which include assets like Bitcoin.
This creates a legal vacuum:
Stablecoins are not legally recognized as DFAs
They are not covered by digital currency regulations
Therefore, they lack formal property protection status in the Russian legal system
Because of this, disputes involving stablecoins cannot be resolved through standard judicial mechanisms, leaving users without clear recourse.
The Case of Dmitry Timchenko: A Practical and Legal Conflict
The case before the court centers on Moscow resident Dmitry Timchenko, who in 2023 lent 1,000 USDT to another party.
When the borrower refused to return the funds, Timchenko took the matter to court—only to be repeatedly denied.
His legal journey included:
1. District Court – rejected the claim
2. Appeal to Regional Higher Court – dismissed
3. Appeal to the Supreme Court of Russia – also dismissed
In all instances, the courts ruled that stablecoins are not protected as property under existing definitions of digital assets, and therefore Timchenko’s claim lacked legal standing.
