- The Constitutional Court will decide if stablecoins like USDT are legal property in Russia.
- The case stems from a failed loan recovery, exposing a gap in Russia’s digital asset laws.
- The verdict impacts a $376B market, as Russia overtakes the UK in crypto adoption.
Russia’s Constitutional Court is set to pass its judgment on whether citizens have property rights over stablecoins like Tether’s USDT, the world’s largest stablecoin by market cap.
The review stems from a loan dispute involving Moscow resident Dmitry Timchenko. Timchenko sought to recover 1,000 USDT he lent to an acquaintance in 2023.
Lower courts threw out his claim. They argued that because Russia’s “Digital Financial Assets” (DFA) laws do not explicitly cover foreign stablecoins, the court could not enforce the debt. Timchenko appealed, arguing this leaves crypto holders with no theft protection.
The Central Bank’s Dilemma: ‘Surrogate’ or Asset?
Central bank deputy chairman Alexey Guznov called fiat‑pegged stablecoins as “monetary surrogates,” and pointed out that their circulation on public blockchains complicates ownership verification. Rosfinmonitoring added that voluntary reporting remains the only reliable method of establishing ownership.
Meanwhile, lawmakers claim that USDT is neither a DFA nor a digital currency, but foreign digital property, complicating the status of stablecoin ownership in Russia.
Related: ECB Stablecoin Warning Raises Risk Of Sudden Eurozone Interest Rate Shift
Russia is cautiously embracing crypto for cross‑border trade with Finance Minister Anton Siluanov announcing that the government and central bank have agreed to legalize cryptocurrency use in foreign settlements. The move is a response to sanctions that have limited access to global payment systems like SWIFT.
A Decision That Could Redefine Digital Property
The Constitutional Court will issue its verdict in a closed session within weeks, with experts predicting a precedent‑setting outcome for future civil disputes involving stablecoins. While a few in crypto space dismissed the case as a misuse of judicial resources, the rapid growth of the stablecoin market, up 50% this year to $303 billion.
Interestingly, Russia has left behind major Western economies such as the United Kingdom and Germany. According to the latest European Crypto Adoption report from blockchain analytics firm Chainalysis, Russia received $376.3 billion in cryptocurrency between July 2024 and June 2025.
Russia’s ranking follows increasing crypto volumes, up 48% from last year’s $256.5 billion. The increase pushes its lead even further ahead of countries like the UK, which recorded $273.2 billion in the same period, roughly 30% less than Russia.
Related: Alibaba Bypasses Stablecoins, Taps JPMorgan’s JPMD for New B2B Payments
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