Donald Trump

Tornado Cash

Tornado

The crypto industry is abuzz following the U.S. Court of Appeals for the Fifth Circuit’s decision on November 26, which <a href="https://cointelegraph.com/news/treasury-donald-trump-tornado-cash-approach" rel="noopener noreferrer nofollow">determined</a> that the Treasury’s Office of Foreign Assets Control (OFAC) exceeded its authority in sanctioning certain Tornado Cash smart contracts. These immutable contracts, targeted in 2022 for their alleged role in laundering over $7 billion worth of crypto, were deemed beyond the scope of OFAC’s statutory power.
The decision, which emerged from a case backed by Coinbase and six plaintiffs, doesn’t completely absolve Tornado Cash but opens the door for a potential policy shift starting in 2025. Legal experts believe the case will return to lower courts for additional motions and judgments, a process likely to stretch over several months.
Bill Hughes, senior counsel at ConsenSys, stated that OFAC retains major power to sanction entities connected to Tornado Cash. However, the ruling could redefine how sanctions on immutable smart contracts are approached under a new administration.
<h2 id="span-style-font-weight-400-trump-s-administration-could-shape-policy-span">Trump’s Administration Could Shape Policy</h2>
The incoming administration of President-elect Donald Trump may be pivotal in determining Tornado Cash’s fate. According to Hughes, the Trump Treasury might align with the court’s analysis, potentially softening the sanctions regime.
“Under a Trump administration, it’s more likely that this opinion will be adopted as Treasury policy,” Hughes noted, while cautioning that changes may not be immediate. Trump’s national security stance on crypto remains uncertain, but his Treasury pick, Scott Bessent, a prominent financial adviser, may steer policy in a new direction.
While Tornado Cash’s sanctions status under President Biden involved 44 smart contract addresses listed as Specially Designated Nationals, Trump’s administration could reshape how the U.S. handles crypto-related sanctions.
<h2 id="span-style-font-weight-400-tornado-cash-legal-battles-span">Tornado Cash Legal Battles</h2>
Meanwhile, the broader Tornado Cash saga continues to unfold in courtrooms globally. Crypto advocacy group <a href="https://thecoinrise.com/coin-center-sues-us-treasury-for-tornado-cash-sanction/" rel="noopener noreferrer nofollow">Coin Center has its own lawsuit against the Treasury</a>, arguing that smart contracts lack the characteristics of “property” and should not be subject to sanctions.
Separately, <a href="https://thecoinrise.com/tornado-cash-developer-sentenced-for-money-laundering/" rel="noopener noreferrer nofollow">Tornado Cash co-founders face prosecution</a>. Roman Storm, charged by the U.S. Justice Department, is set to stand trial in April 2025. His co-founder Roman Semenov remains on the FBI’s most-wanted list. Calls from the crypto community for clemency may increase should Storm face conviction.
The post <a href="https://thecoinrise.com/court-ruling-challenges-ofac-sanctions-on-tornado-cash-whats-next/" rel="noopener noreferrer nofollow">Court Ruling Challenges OFAC Sanctions on Tornado Cash, What’s Next?</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Court Ruling Challenges OFAC Sanctions on Tornado Cash, What’s Next?

Table of Contents

TheCoinrise Media

Other articles published on Nov 28, 2024

Floki Joins Forces with Animoca Brands' Forj to Launch $MONKY Memecoin

Tether Announces End of Euro-Pegged Stablecoin EURt, Halts New Issuances

Master Trader Reveals: These Two Altcoins Are Set for Parabolic Gains!

Celsius Creditors Recover 60% After $127M Bitcoin, USD Second Payout

Stellar Lumens (XLM) Powers Ahead with Bullish Momentum and Major Price Projections

Ethereum Ecosystem Tokens Surge: ENA’s Position for Q1 2025

Join our free newsletter for daily crypto updates!