Coinbase Criticizes US Treasury Defiance

Coinbase CLO Criticizes US Treasury’s Defiance of Court Ruling on Tornado Cash

• The U.S. Department of Treasury was criticized for not fully complying with a court ruling regarding sanctions on Tornado Cash.
• The Fifth Circuit Court ruled that Tornado Cash’s immutable smart contracts do not constitute “property” under IEEPA, challenging the legality of its SDN listing.
• Despite the ruling, the Treasury plans to remand the issue for further review and partially delist Tornado Cash.
• Paul Grewal from Coinbase expressed disappointment at the Treasury’s decision, highlighting concerns over national security claims.
• The plaintiffs, including Coinbase, intend to file a reply to ensure compliance with the court’s decision.

The Fifth Circuit Court determined that immutable smart contracts like those of Tornado Cash do not qualify as “property” under IEEPA, affecting their sanctionability by the U.S. Treasury. Despite this, the Treasury aims to partially comply and review its actions further.