
US currency defacement laws are in place to protect the integrity and value of the US dollar.
Defacing US currency is a federal offense, punishable under Title 18 of the United States Code.
The US Secret Service is responsible for investigating and prosecuting cases of currency defacement.
In 1965, the US government made it a crime to mutilate, cut, or otherwise damage US currency, with a penalty of up to 12 years in prison and a fine.
U.S. Currency Alteration Laws
It's not entirely accurate to say that altering US currency is always illegal. Section 331 of Title 18 of the United States code provides criminal penalties for anyone who fraudulently alters coins, but the key word is fraudulent.
You're allowed to melt a silver dollar and sell it for its silver value, or use heat and pressure to turn a coin into a ring, as long as there's no intention to deceive. In fact, the existence of penny stretcher machines at tourist attractions is a good indication that altering coins is not always against the law.
Burning US dollar bills is a different story, however. According to Title 18, Section 333 of the United States Code, it's illegal to mutilate, deface, disfigure, or destroy currency with the intent to render it unfit for circulation.
Additional reading: Currency Code for Usd
Defacing U.S. Currency

Defacing U.S. Currency is not always a crime, but it's not entirely legal either. The key to avoiding trouble is understanding what's considered fraudulent.
Section 331 of Title 18 of the United States code specifically prohibits altering, defacing, or mutilating U.S. coins with fraudulent intent. This means if you change a coin's appearance and try to pass it off as something else, you're breaking the law.
The Mint doesn't condone altering U.S. coinage, but it's not against the law unless you're trying to deceive someone. The line is drawn at fraudulent intent, not just the act of altering itself.
Altering coins for jewelry-making or melting them down for their metal value is generally okay, but be aware of the fine line between legitimate alteration and fraudulent activity.
Consequences of Altering Currency
Altering currency is a serious offense in the United States. According to Title 18, Section 333 of the United States Code, it's illegal to mutilate, deface, disfigure, or destroy currency with the intent to render it unfit for circulation.
Burning US dollar bills is a clear example of this, as it's explicitly stated in the law that this action is unlawful if the objective is to render the money unusable.
The law is clear: altering currency is a crime, and the consequences can be severe.
Burning Money in the U.S.

Burning US dollar bills is unlawful if the objective is to render the money unusable.
The law specifically prohibits mutilating, defacing, disfiguring, or destroying currency with the intent to render it unfit for circulation.
Burning money intending to render it unusable is considered a felony under federal law.
The punishment for burning US money can include a fine, up to six months in prison, or both.
The severity of the punishment will depend on the case's specific circumstances, such as the amount of money burned and the intent behind the act.
Frequently Asked Questions
Is defaced money still legal tender?
Defaced US currency is still considered legal tender, but the Treasury may not accept it as proof of destruction if more than 50% of the note remains intact. However, its acceptance as payment may still vary depending on the circumstances.
Sources
- https://silverstatefoundry.com/pages/legality
- https://www.foreigncurrencyandcoin.com/is-it-illegal-to-write-or-draw-on-dollars-or-other-currencies/
- https://finty.com/us/budgeting/burn-money-legality/
- https://jasons.works/faq-items/faq-six/
- https://law.stackexchange.com/questions/14509/is-defacing-currency-such-as-coins-illegal
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