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However, the U.S. Department of The Treasury explains that while coins and folded pig dollars are legal tender, there's nothing in the law requiring anybody to accept a donut box full of origami dollars. Private businesses are free to develop their own policies on whether or not to accept any form of legal tender.

If you're convicted of defacing U.S. bills or coins, you can face fines, jail time, or both. For bills, the maximum fine is $100 and the maximum jail sentence is six months. For coins, the jail sentence can be up to five years. To be convicted, you must have the intent to defraud someone.

Yes, It's Legal!

According to Title 18, Chapter 17 of the U.S. Code, which sets out crimes related to coins and currency, anyone who alters, defaces, mutilates, impairs, diminishes, falsifies, scales, or lightens coins can face fines or prison time.

It's illegal to print anything that can plausibly pass as an established currency, unless your specifically authorized to do so by the government. You can make up your own currency if you want. It's technically illegal, but unenforced.

The $10,000 bill is the most valuable U.S. currency now in circulation, according to the U.S. Department of the Treasury. The Treasury stopped printing it, along with the $500, $1,000 and $5,000 denominations, during World War II, and all such bills were declared obsolete on July 14, 1969.

With that, you could conclude that yes it is, in fact, illegal to "mutilate, cut, deface, disfigure, or perforate, or unite or cement together" any bank bill, draft, note or evidence of debt by a national or federal entity.

Displaying paper money requires using safe techniquesFrames. Framed paper notes, like works of art on paper, should be glazed.Matting. Framed works should always be mounted so that there is an air space between the glass and the note.Mounting. How you mount the notes is important.Dec 11, 2014

A Federal Reserve note is a term to describe the paper demand liabilities of the Federal Reserve, commonly referred to as "dollar bills," which circulate in the U.S. as legal tender. For practical purposes, the Federal Reserve note is the monetary unit of the U.S. economy.