So on reddit today I saw this quarter that was artistically carved and made into a necklace/medallion. I've also seen people that create rings out of quarters and not to mention those penny-pressing souvenir machines in many places... which led me to ponder whether this was illegal as many people claim and point to USC 18 Section 331 or thereabouts...
USC 18 Section 331 starts with:
Whoever fraudulently alters, defaces, mutilates, impairs, diminishes, falsifies, scales, or lightens any of the coins coined at the mints of the United States, or any foreign coins...
(emphasis mine)
I'm not a lawyer, but I've always thought this meant that it was illegal to alter or deface currency only if there was intend to defraud with such "altered" currency? Is my interpretation correct? now I'm not quite sure, since I recall that recently Obama pardoned a person convicted of "mutilation of coins"...?