Originally published on: December 03, 2024
The recent appellate court ruling on the sanctions imposed by the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) concerning Tornado Cash has left the crypto industry in a state of uncertainty.
On Nov. 26, the US Court of Appeals for the Fifth Circuit ruled that OFAC had overstepped its authority in sanctions associated with Tornado Cash’s smart contracts. While this ruling did not provide a definitive conclusion, it may influence policy changes in 2025, affecting how courts address crypto mixers.
Bill Hughes, Consensys’ senior counsel, highlighted that OFAC still holds significant power in sanctioning entities linked to Tornado Cash. The aftermath of the Nov. 26 judgment could lead to a lengthy legal process as the case is referred to lower courts for further consideration.
With a potential change in administration expected in 2025 under Donald Trump, the Treasury Department might align its sanctions policies with the court’s decision or choose to continue the legal battle.
Coinbase CEO, Brian Armstrong, recently expressed the company’s stance on working with law firms that have employed individuals with anti-crypto actions in their past government roles. Armstrong vowed that Coinbase would avoid collaborating with such law firms and urged the crypto community to do the same.
Amidst speculation, former SEC Commissioner Paul Atkins is reportedly a frontrunner for the agency’s chair position under the new administration. Known for his pro-innovation views and crypto expertise, Atkins could bring potential amendments to regulatory oversight in the crypto industry, possibly shifting responsibilities from the SEC to the CFTC.
As the crypto industry navigates through legal uncertainties and potential regulatory changes, staying informed and vigilant is crucial for making informed decisions.
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