The Federal Reserve threaten legal action against Bitcoin Magazine over FEDNOW parody merchandise

On November 3, 2023, the U.S. Federal Reserve initiated a legal confrontation with Bitcoin Magazine, a publication known for its bitcoin advocacy. The dispute arose over a line of merchandise sold by Bitcoin Magazine that featured parodic representations of the FedNow Service logo and trademark. The merchandise was intended to critique the FedNow system, particularly its potential surveillance capabilities and the threat it posed to American civil liberties.
 

The Federal Reserve Bank of Chicago sent a cease-and-desist letter to Bitcoin Magazine, claiming that the use of the FedNow Service image and trademark constituted unauthorized infringement and was not protected speech. The central bank argued that the merchandise misled readers into believing there was an affiliation between Bitcoin Magazine and the Federal Reserve.
 

In a bold response, Bitcoin Magazine penned an open letter to the Federal Reserve Financial Services’s Deputy General Counsel, Thaddeus Murphy. The letter humorously thanked Murphy for his interest in their online store and offered to send a box of merchandise to any of the 12 Federal Reserve Banks. More seriously, it stated that the magazine would not comply with the cease-and-desist request, asserting their First Amendment rights to criticize the FedNow system through their merchandise.