According to the case filed April 5 in the Texas District Court, the plaintiffs, backed by Coinbase, want OFAC to settle the first two counts of their original complaint, which was filed last September.
Popular Public Listed Exchange coinbase Supporting the new class that wants to overturn the Tornado Cash ban. With this, the US Treasury is facing a new legal case targeted at its move to approve crypto mixers. The proposal to lift the Tornado Cash ban was filed by six individuals and supported by Coinbase. Paul Grewal, CEO of the crypto exchange, also confirmed in a tweet that the company is pursuing a legal challenge to the US-imposed sanctions. he explained:
“A starting point: Anytime we provide privacy to all, there is a risk that privacy can be misused by someone. But the Constitution and the law of the land recognize that we can only protect the illegal activities of a few. The plaintiffs in this challenge are among thousands of law-abiding Americans who want to protect their privacy online but can no longer do so because of government restrictions.
In addition to the Treasury Department, the document targets the Office of Foreign Assets and two prominent names. They are “Janet Yellen, in her official capacity as Secretary of the Treasury; and Andrea M. Gacchi, in her official capacity as Director of the Office of Foreign Assets Control (OFAC).
Coinbase Supports New Court Action To Overturn Tornado Cash Ban
According to Case Filing in Texas District Court on April 5, the plaintiffs, backed by Coinbase, want OFAC to settle the first two counts from their original complaint, which was filed last September. If the latest filing is allowed, some issues will be ruled out while others will go to trial.
Grewal also shed light on the rationale behind the sanctions against Tornado Cash. He added that the US authority has no authority to approve the crypto mixer as it is neither a foreign “national” or a “person” but software. The CEO also pointed out the limitations of the law as it only gives the government the power to approve people’s properties. Arguably, assets are the ability to own or control them. “But no one can change, remove, or otherwise control the 20 smart contracts at the core of the TC software.” Grewal said that smart contracts work without human control.
“If immutable open source software code can be sanctioned, it is difficult to see why the government cannot now ban any abstract concept that cannot be what Congress meant when it chose the word “property.”
Grewal further argued that the restrictions violate the First Amendment. The Coinbase CEO said the ban is not narrowly tailored and prevents Americans from using Tornado Cash because some bad actors also use the software.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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