Last month, the US Treasury’s US Treasury Treasury Control Office has struck tornado money on its list of sanctions, months after a court of appeal ruled that the guard dog could not designate the mixer’s intelligent contracts.
You read State of Crypto, a Coindesk newsletter looking at the intersection of the cryptocurrency and the government. Click here to register for future editions.
The story
In November 2024, a fifth appeal circuit court ruled that the control of foreign assets of the Treasury Department (OFAC) could not sanction intelligent contracts linked to the Tornado Cash. Last month, OFAC has completely struck the tornado, although it left the Roman developer Semenov on his specially designated national list.
Why it matters
The question of whether the tornado could be sanctioned to start was a discord for the cryptographic industry. The decision of the fifth circuit sparked a rally in the price of the torn token and raised the hope that it would be more difficult for the American government to block the legal uses of the mixers.
Decompose it
Tornado cash’s cancellation included smart contract addresses and other components of the entire mixer and followed the November decision. The cancellation may have been an effort to pre-empt a court decision which would force the OFAC to permanently radialize the torade in cash.
Save a little: a group of developers continued the OFAC after Tornado Cash was sanctioned for the first time by the support of Crypto Exchange Coinbase. This case, van Loon c. Treasury, received an initial decision from a judge of the district court which was favorable to the Treasury Department. On appeal, however, the fifth circuit ruled – a little closely – that intelligent contracts were outside the scope of the jurisdiction of the OFAC. The appeal committee referred the case to the district court to settle the next steps.
On March 21, on the same day, he withdrew the painting from his list of sanctions, the OFAC filed an opinion by indicating to the court that the dismissal meant that the cot of legal files “The case is now theoretical”.
Peter Van Valkenburgh, Executive Director of the Coin Center, said that the November decision had left the OFAC with few options.
“They could have waited for the court to disable the sanctions or they could have brought them back themselves, and they have struck themselves down,” he said. “You can read these two ways. You can read it as” I want to try to preserve a certain ability to fight in the future or [make] Another list, ‘ [and] It is really difficult because this opinion of the fifth circuit is really bad for them. “”
The other read for radiation is that the OFAC wanted the question to be resolved quickly, he said.
Leah Moushey, a lawyer for Miller & Chevalier, said the court could choose to reject the OFAC’s file because there is an open question about the overhaul of the tornado money in the future. She underlined a Supreme Court case with thematic similarities.
The court declared in this case, FBI c. Fikre, that the American government had not proven enough that the simple fact of withdrawing an individual from a list of non-theft meant that he would never be put back on the list.
The OFAC may have to show in this case that tornado trees cannot be designated again.
Another question open for the arbor in cash is whether radiation has an impact on the criminal affair of the US justice ministry against the Roman Storm promoter. After the fifth circuit decision, Storm lawyers filed a request asking the judge supervising the criminal case to reject the indictment, but the judge has already judged that the case should go ahead.
“The judge determined that the scope of conduct would go beyond interactions with the intelligent contract,” said Moushey. The decision of the fifth circuit has not discussed Tornado Cash as an entity.
Van Valkenburgh noted that the OFAC had left its sanctions against Semenov in place, and the Doj will continue to try to argue that Storm conspired to violate the sanctions.
The Storm case is currently scheduled in July.
Wednesday
- 2:00 p.m. UTC (10:00 am) The Chamber’s Financial Services Committee held an increase on stable law, the law on the protection of financial technologies and the CBDC anti -surveillance law, finally adopting the three bills – after a day session on around forty changes proposed different.
THURSDAY
- 14:00 UTC (10:00 HE) The senatoric banking committee voted to advance the appointments of the Chairman of the Commission for Securities and Exchanges, Paul Atkins and the Controller, Jonathan Gould.
- (404 media) T-Mobile offers a GPS tracker so that parents can keep an eye on their children. Last week, 404 media, some parents found that they were unable to follow their own children but received location data for other children.
- (New York Times) Times reported a Ponzi program that used the crypto promises to manage a large number of people in an Argentinian city. These types of scams are very common.
- (Atlantic) The Trump administration said that in a tribunal court that he had sent a person with a protected legal status to a prison camp in El Salvador without holding an hearing by an “administrative error”. A federal judge ordered the administration to bring him back to the United States on Friday. The white house press secretary Karoline Leavitt replied with a statement saying “We are not aware that the judge is competent or authority over the country of El Salvador”.
- (The Wall Street Journal) New Jersey Democrat, Cory Booker, broke the US Senate record for the longest speech on the ground after making a speech on the 25 -hour marathon to protest the policies of President Donald Trump.
- (New York Times) Donald Trump has unveiled a whole set of prices on countries around the world, saying that they were reciprocal against the prices imposed by the trade partners of the United States. “The markets will explode,” said Trump in remarks.
- (Yahoo! finances) The markets “Crate Friday”, after an equally rough Thursday.
- (Cable) Among the countries and places tariffed by the United States are the Heard and McDonald Islands, which is uninhabited by humans and does not export goods.
- (ABC News) The White House said that its rate rate against individual countries was half the rate rates of these countries against American economists according to real calculations by dividing a country’s trade deficit by its import value, then divided in two, ABC News reported.
- (Reuters) The other effect of renewed prices seems to be an increase in the chances of recession, according to a note from JP Morgan shared by Reuters.
If you have reflections or questions about what I should discuss next week or any other comment you want to share, do not hesitate to send me an e-mail at nik@PK Press Club.com or to find me on Bluesky @ nikhileshde.bsky.social.
You can also join the group conversation on Telegram.
See you next week!
