Crypto Policy Group Describe Tornado Cash Sanctions as Unprecedented

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Last Updated on June 3, 2023 by Bitfinsider

In a new amicus brief filed with DeFi Education Fund, the Blockchain Association dubbed the U.S. Treasury Department’s decision to sanction Tornado Cash “unprecedented and unlawful.”

Last year, the Treasury Department authorised Tornado Cash, an open-source software that can be used to anonymize Ethereum blockchain transactions. The action was met with pushback by crypto advocates, including the Washington, D.C. policy nonprofit Coin Centre, which filed a lawsuit against the Treasury Department over the sanctions.

This week, the Blockchain Association, a crypto advocacy organisation in Washington, D.C., and the DeFi Education Fund, a nonpartisan research and advocacy organisation, filed a legal brief in support of Coin Center’s case.

“It is essential to recognise that Tornado Cash is merely a tool – punishing the tool itself because it can be used by anyone, including bad actors, runs counter to the values on which this country was founded,” said Blockchain Association CEO Kristin Smith in a statement.

“Blockchain Association supports Coin Center’s advocacy for the legal and responsible use of blockchain technology. Smith added that regulatory actions should only target bad actors who abuse this instrument for illegal purposes.

The cryptocurrency exchange Coinbase is supporting a second case against the department over sanctions. In this case, the Blockchain Association has also filed an amicus brief. Both lawsuits assert, among other things, that the government exceeded its authority by targeting software rather than an individual or organisation.

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