Coinbase Chief Legal Officer: Court rules that Tornado Cash’s smart contracts are not sanctioned “property”

Odaily Planet Daily Report: Coinbase Chief Legal Officer Paul Grewal posted on X stating: "Privacy wins. Today, the U.S. Fifth Circuit Court ruled that the U.S. Treasury Department's sanctions on the Tornado Cash smart contract are illegal. This is a historic victory for cryptocurrency and all who care about defending freedom. Coinbase is proud to have helped lead this important challenge. Now these smart contracts must be removed from the sanctions list, and Americans will once again be allowed to use this privacy-protecting protocol. In other words, the government's overreach will not be allowed to continue. No one wants criminal elements to use crypto protocols, but Congress has not authorized the complete blockade of open-source technology just because a small portion of users are bad actors. These sanctions would expand the Treasury Department's power to an unrecognizable degree, and the Fifth Circuit Court agreed. Specifically, the court ruled that while the Treasury Department has the authority to act against 'property,' the core open-source, immutable smart contracts of Tornado Cash cannot be owned by anyone and therefore are not 'property' subject to sanctions. We are grateful for the court's careful consideration of this matter. Looking ahead, Coinbase will tirelessly advocate for clear, fair rules to foster innovation in the U.S. and abroad."