KeyTakeawys:
- U.S. Treasury defies courtroom ruling on Twister Money sanctions, elevating authorized issues.
- Coinbase’s Paul Grewal criticizes Treasury’s response to courtroom’s choice on Twister Money.
- Treasury plans to overview Twister Money itemizing, regardless of courtroom ruling towards sanctions.
Coinbase’s Chief Authorized Officer, Paul Grewal, has raised issues concerning the U.S. Treasury’s response to a latest courtroom ruling on Tornado Cash sanctions. Grewal’s feedback deal with the Treasury’s intention to defy elements of the Fifth Circuit Court docket of Appeals’ choice, which challenged the legality of the sanctions imposed on the cryptocurrency mixing service, Twister Money.
In December 2024, the Fifth Circuit Court docket of Appeals dominated that the U.S. Treasury Division’s sanctions on Twister Money have been illegal. Particularly, the courtroom decided that the good contracts related to Twister Money didn’t qualify as “property” below the Worldwide Emergency Financial Powers Act (IEEPA). The courtroom’s ruling was primarily based on the truth that Twister Money’s good contracts are immutable and can’t be altered, thereby exempting them from the sanctions usually positioned on property.
Regardless of this ruling, the U.S. Treasury has signaled that it’s going to not totally comply. As an alternative, it proposed a remand for additional proceedings. The Treasury’s stance has been criticized by Coinbase’s Paul Grewal, who expressed disappointment over the company’s response. Grewal argued that whereas the courtroom had dismissed the Treasury’s authority to checklist Twister Money on the Specifically Designated Nationals (SDN) checklist, the Treasury was nonetheless contemplating partial delisting.
Paul Grewal’s Criticism of the Treasury’s Response
In a collection of tweets, Grewal questioned the Treasury’s intentions, noting that the company’s refusal to completely abide by the courtroom’s order indicated a disregard for the courtroom’s authorized interpretation.
Grewal emphasised that the Treasury’s actions, similar to partially delisting Twister Money, would solely lengthen the authorized points that led to the case within the first place. He identified that the Treasury had assured that nationwide safety issues can be addressed, however he maintained that the company was overstepping its authority.
Grewal’s criticism factors out ongoing issues concerning the Treasury’s interpretation of its authorized powers and its method to cryptocurrency rules. He highlighted that the Treasury’s actions may create additional authorized problems moderately than resolve them.
Treasury’s Subsequent Steps Amid Authorized Uncertainty
Regardless of the courtroom’s ruling, the U.S. Treasury stays decided to handle the difficulty of Twister Money’s itemizing. The Treasury plans to overview the matter with the Workplace of Overseas Belongings Management (OFAC) and should take away Twister Money from the SDN checklist. Nevertheless, no particular timeline has been supplied for these actions.
Whereas the Treasury strikes ahead with its proposed overview, Coinbase and different plaintiffs within the case intend to submit a proper reply to make sure full compliance with the courtroom’s choice. The continued authorized battle between the U.S. Treasury and Twister Money’s supporters has raised necessary questions concerning the regulation of decentralized applied sciences and their intersection with U.S. sanctions legal guidelines.
