U.S. Treasury Delists Tornado Cash Following Court Ruling on Smart Contracts
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has delisted Tornado Cash from its sanctions list following a Fifth Circuit Court of Appeals ruling stating that smart contracts cannot be sanctioned. Developer Roman Semenov remains on the Specially Designated Nationals list.
Key Points
- OFAC's delisting occurred after a November 2024 court ruling that limited OFAC’s jurisdiction over smart contracts.
- The ruling led to price increases in the TORN token and raised concerns about government restrictions on legal mixer usage.
- A group of developers, supported by Coinbase, had previously sued OFAC over the sanctions.
- OFAC indicated the matter is now moot, as it seeks resolution before further court actions.
- Legal experts noted potential implications for future designations of Tornado Cash.
- The criminal case against developer Roman Storm continues despite the delisting, with trial set for July.
Related Developments
- Illinois dropped a lawsuit against Coinbase, joining other states like Kentucky and South Carolina.
- Justin Sun provided a $500 million loan to Techteryx amid liquidity issues with TrueUSD reserves.
- The SEC clarified that most crypto stablecoins are not considered securities.
- Circle filed for an IPO after significant reserve growth.
Legislative activities included the House Financial Services Committee passing three significant bills related to cryptocurrency regulation.