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The US Treasury, under a Trump administration, may bring reform to how courts handle crypto mixer-related incidents, following OFAC’s overreach in the Tornado Cash sentencing.
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Many in the crypto industry are still reeling from an appellate court decision that the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) overstepped in sanctioning certain smart contracts associated with the cryptocurrency mixer Tornado Cash.
On Nov. 26, the US Court of Appeals for the Fifth Circuit ruled that OFAC “exceeded its statutory authority” when it sanctioned some of Tornado Cash’s immutable smart contracts in 2022.
Though the ruling did not close the door on the Treasury Department’s case, the six plaintiffs backed by Coinbase may see policy changes in 2025 impacting how the courts handle addresses associated with crypto mixers.
Bill Hughes, Consensys’ senior counsel and director of global regulatory matters, told Cointelegraph that OFAC still has a “lot of authority” to sanction entities connected to Tornado Cash. The Nov. 26 judgment will likely see the case sent down to lower courts, where lawyers can refile motions for summary judgment, a process that could “take months.”
With a new presidential administration under Donald Trump expected in 2025, the Treasury may adapt its sanctions regime to align with the court decision or continue to fight the matter on appeal.
“I actually think under a Trump administration, it’s more likely that this opinion will be adopted as Treasury policy,” said Hughes, adding that it was still unlikely the Treasury would change Tornado Cash’s sanctions status before Trump takes office.
“It is to be seen how hawkish the Trump administration is on these national security issues as they relate to crypto,” said Hughes. “I could see the Treasury under a Trump administration basically adopting the court’s analysis of immutable smart contracts.”
Coinbase will drop law firms who hire anti-crypto former SEC staff — CEO
Coinbase CEO Brian Armstrong said the cryptocurrency exchange will not work with law firms that hire individuals involved in what he described as anti-crypto actions during their tenure in government.
On Dec. 3, Armstrong said in an X post that Coinbase will avoid law firms that hire people who tried to “unlawfully kill” an industry without clarifying the rules. He urged the crypto community not to support individuals who had worked against the sector.
Armstrong claimed senior partners at law firms are often unaware of the crypto industry’s position on this issue. He encouraged community members to make their law firms aware that hiring anti-crypto officials could result in losing business.
Paul Atkins emerges as leading candidate for SEC chair
Former United States Securities and Exchange Commission (SEC) Commissioner Paul Atkins has emerged as the leading candidate to chair the agency under President-elect Donald Trump’s new administration.
Atkins is known for his pro-innovation stance and crypto expertise and is said to be capable of “returning the agency to the so-called ‘gold standard,’” according to an X post by financial reporter Eleanor Terrett.
Source: Eleanor Terrett
Atkins’ potential appointment comes amid speculation that Trump’s administration may shift cryptocurrency regulatory oversight from the SEC to the Commodity Futures Trading Commission (CFTC), signaling a major policy change that could significantly impact the crypto industry.
This article first appeared at Cointelegraph.com News
