The U.S. Fifth Circuit Court of Appeals ruled that the Treasury Department exceeded its authority to sanction Tornado Cash

Odaily News The Fifth Circuit Court of Appeals in Texas overturned sanctions against Tornado Cash, a cryptocurrency mixing platform, holding that the Treasury Department’s Office of Foreign Assets Control (OFAC) exceeded its jurisdiction by sanctioning Tornado Cash’s immutable smart contracts, which by their nature cannot be owned or controlled by any one party.
The court noted that Tornado Cash’s immutable smart contracts do not fall within the definition of “property” under the International Emergency Economic Powers Act, and that these self-executing programs operate independently and cannot be shut down or altered. The ruling also addressed the plaintiffs’ defense of Tornado Cash’s legitimate applications, such as ensuring financial privacy and protecting against cyber threats.
Legal analysts expect the ruling to contribute to ongoing discussions about cryptocurrency regulation and the governance of open-source blockchain systems.
OFAC has not yet indicated whether it will take the case to the Supreme Court. Currently, the case has been returned to the district court for further review based on the decision of the appeals court. (Bitcoin.com)