Originally published on: December 03, 2024
The recent appellate court ruling questioning the U.S. Department of the Treasury’s actions against Tornado Cash has sent shockwaves through the crypto industry. Many are still coming to terms with the court’s decision that the Office of Foreign Assets Control (OFAC) overstepped its boundaries by sanctioning certain smart contracts linked to Tornado Cash.
Although the November 26 ruling did not bring an end to the Treasury Department’s case, it could pave the way for policy changes in 2025 that will impact how courts handle crypto mixer-related addresses. Bill Hughes from Consensys believes that OFAC retains significant authority to sanction entities associated with Tornado Cash, and the legal battle could play out in lower courts for months.
With the imminent change in administration under Donald Trump expected in 2025, there is speculation on whether the Treasury will adjust its sanctions framework to align with the court’s decision or continue to challenge it on appeal. Brian Armstrong, CEO of Coinbase, has taken a firm stance, stating that the exchange will steer clear of law firms hiring individuals who have acted against the crypto industry.
Armstrong emphasized the importance of not supporting those who have attempted to stifle crypto innovation. He called on community members to raise awareness within their law firms about the consequences of hiring anti-crypto officials, hinting that it could result in a loss of business. Meanwhile, former SEC Commissioner Paul Atkins is rumored to be the frontrunner for the agency’s chairmanship under Trump’s new administration.
Known for his pro-innovation views and crypto expertise, Atkins is expected to restore the agency’s reputation to the so-called ‘gold standard.’ There are speculations that regulatory oversight of cryptocurrencies may shift from the SEC to the Commodity Futures Trading Commission (CFTC) under Trump’s administration, signaling a major policy change with far-reaching implications for the crypto industry. Stay tuned for more updates on the evolving legal landscape of the crypto world.
