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Authored by Mark Goodwin via Bitcoin Magazine,

The U.S. Federal Reserve is taking legal action against Bitcoin Magazine in an attempt to silence criticism of its recently launched FedNow interbank clearing and settlement service…

In a letter sent to the publication by the Federal Reserve Bank of Chicago, the central bank of the United States is claiming that Bitcoin Magazine merchandise that parodies its services are not protected speech, but rather an unauthorized infringement of its image and trademarks.

The dispute centers around the use of the FedNow Service image and trademark in a line of merchandise sold by Bitcoin Magazine that seeks to criticize the surveillance capabilities of the FedNow system, and how it threatens American civil liberties.

The Federal Reserve alleges that Bitcoin Magazine used the trademark without permission to mislead readers into believing a connection exists between the publication and the central bank.

In response to the allegations, Bitcoin Magazine has penned an open letter to the Federal Reserve Financial Services’s Deputy General Counsel, Thaddeus Murphy: (emphasis ours)

An interesting point. For starters, what goodwill has the Federal Reserve built up? Have you seen the state of the working class today? Perhaps you have already forgotten how Fed policy directly led to mismanaged bond portfolios in regional banks across the country, such as Silicon Valley Bank, Signature, Silvergate or First Republic? Perhaps you have already forgotten about the historic inflation rates seen throughout the U.S. since government-imposed lockdowns all but forced the Treasury’s hand to stimulate the economy to the tune of trillions of dollars?

There is no goodwill, Mr. Murphy. And certainly not substantial goodwill either.

This is false. Bitcoin Magazine is exercising its First Amendment rights to social commentary and parody. I’m sure you’ll notice the all-seeing eye that symbolizes the state of total financial surveillance that your agency is seeking to impose on the American financial system.

We do not believe that anyone that is familiar with our editorial guidelines and general stance on the world would ever associate Bitcoin Magazine with the Federal Reserve. We agree with your assertion that “no such association or relationship exists.”

We have no interest in causing confusion, mistakes, or deception. That sounds more like a job for those responsible for telling the market they wouldn’t raise rates after a massive monetary expansion, and then went on to raise them faster than at any time in U.S. financial history.

We look forward to defending our First Amendment rights, and the opportunity to make clear to all Americans the difference between the open, free, and decentralized financial system that is Bitcoin, and the centralized FedNow system that threatens our nation’s founding values.

Best,

Mark Goodwin

Editor In Chief
Bitcoin Magazine

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Below are copies of The Federal Reserve's cease and desist letter and Bitcoin Magazine's legal response: