Trump Administration Could Reshape Treasury’s Stance on Tornado Cash
Trump Administration Might Change Treasury’s Stance on Tornado Cash
The crypto industry is closely watching how the United States Treasury might change its approach to Tornado Cash sanctions under a new presidential administration. A recent appellate court decision challenges the Treasury’s handling of the case, potentially paving the way for policy shifts in 2025.
Court Ruling Challenges OFAC’s Authority
On Nov. 26, the US Court of Appeals for the Fifth Circuit ruled that the Office of Foreign Assets Control (OFAC) overstepped its authority when it sanctioned Tornado Cash’s immutable smart contracts in 2022. Though not final, this ruling has paved the way for further litigation in lower courts, where plaintiffs backed by Coinbase may advocate for reforms in how crypto mixers are treated under the law.
The ruling comes as a major victory for some in the crypto industry who have argued that sanctioning immutable smart contracts sets a dangerous precedent for decentralized technology.
Trump’s Treasury May Bring Policy Shifts
Some speculate that this could change should Donald Trump return to the presidency in 2025 and decide to revise the Treasury’s approach to Tornado Cash and other similar cases. According to Bill Hughes, senior counsel at Consensys, a Trump Treasury might absorb the court’s analysis and apply it to its policymaking, perhaps even softening its crypto sanction regime.
The new administration will also usher in fresh leadership as Scott Bessent takes over the Treasury secretary’s role. It is perceived that Bessent’s approach toward the regulation of cryptocurrency would shape the way the Treasury balances interests of innovation with national security concerns.
Developers Face Ongoing Legal Challenges
Tornado Cash developers remain under scrutiny, with ongoing legal battles further complicating the situation. Co-founder Roman Storm faces trial in April 2025, while Roman Semenov is listed as one of the FBI’s most wanted individuals. Meanwhile, Alexey Pertsev, another co-founder, is serving a prison sentence in the Netherlands for money laundering, though his legal team plans to appeal.
Implications for Crypto Regulation
The changing legal and regulatory environment surrounding Tornado Cash has profound implications for the crypto space. A lighter-touch position from the Trump administration would create a useful precedent in how regulators will approach the concept of decentralized platforms and smart contracts going forward under US law. On the other hand, should the hardline approach prevail, it could codify policies and further exacerbate tensions between regulators and the crypto world.
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Trump Administration Could Reshape Treasury’s Stance on Tornado Cash
Trump Administration Might Change Treasury’s Stance on Tornado Cash
The crypto industry is closely watching how the United States Treasury might change its approach to Tornado Cash sanctions under a new presidential administration. A recent appellate court decision challenges the Treasury’s handling of the case, potentially paving the way for policy shifts in 2025.
Court Ruling Challenges OFAC’s Authority
On Nov. 26, the US Court of Appeals for the Fifth Circuit ruled that the Office of Foreign Assets Control (OFAC) overstepped its authority when it sanctioned Tornado Cash’s immutable smart contracts in 2022. Though not final, this ruling has paved the way for further litigation in lower courts, where plaintiffs backed by Coinbase may advocate for reforms in how crypto mixers are treated under the law.
The ruling comes as a major victory for some in the crypto industry who have argued that sanctioning immutable smart contracts sets a dangerous precedent for decentralized technology.
Trump’s Treasury May Bring Policy Shifts
Some speculate that this could change should Donald Trump return to the presidency in 2025 and decide to revise the Treasury’s approach to Tornado Cash and other similar cases. According to Bill Hughes, senior counsel at Consensys, a Trump Treasury might absorb the court’s analysis and apply it to its policymaking, perhaps even softening its crypto sanction regime.
The new administration will also usher in fresh leadership as Scott Bessent takes over the Treasury secretary’s role. It is perceived that Bessent’s approach toward the regulation of cryptocurrency would shape the way the Treasury balances interests of innovation with national security concerns.
Developers Face Ongoing Legal Challenges
Tornado Cash developers remain under scrutiny, with ongoing legal battles further complicating the situation. Co-founder Roman Storm faces trial in April 2025, while Roman Semenov is listed as one of the FBI’s most wanted individuals. Meanwhile, Alexey Pertsev, another co-founder, is serving a prison sentence in the Netherlands for money laundering, though his legal team plans to appeal.
Implications for Crypto Regulation
The changing legal and regulatory environment surrounding Tornado Cash has profound implications for the crypto space. A lighter-touch position from the Trump administration would create a useful precedent in how regulators will approach the concept of decentralized platforms and smart contracts going forward under US law. On the other hand, should the hardline approach prevail, it could codify policies and further exacerbate tensions between regulators and the crypto world.
Read More
Nigerian Court Delays Binance Tax Evasion Case Until April 30