Crypto Coinbase challenging inclusion of Tornado Cash in the SDN List
Crypto Coinbase has initiated legal action against the decision of the United States Treasury Department to add Tornado Cash, a decentralized software project, to the Specially Designated Nationals and Blocked Persons (SDN) list. This legal clash highlights the growing tension between the rapidly expanding cryptocurrency industry and federal regulatory authorities.
Tornado Cash: An ethereum blockchain platform protecting privacy
Tornado Cash operates on the ethereum blockchain and provides immutable smart contracts for anonymous cryptocurrency transactions, offering users protection against privacy breaches. This software has become a focal point in the ongoing debate about the appropriate level of government oversight of the digital space.
Allegations and legal arguments by Coinbase
According to Coinbase’s complaint, the Treasury Department’s action to penalize Tornado Cash exceeds its legal authority under the International Emergency Economic Powers Act (IEEPA) and the North Korea Sanctions and Policy Enhancement Act. Coinbase argues that the traditional definitions of a “national” or “person” do not apply to Tornado Cash, as it is a decentralized organization. The plaintiffs also contend that the smart contracts in question do not qualify as “property” in the legal sense, as they are immutable and no one owns them.
The complexities of governing blockchain technology and individual privacy
The legal proceedings shed light on the challenges of governing blockchain technology and its implications for privacy and individual rights. The inclusion of Tornado Cash on the SDN List by the Treasury Department is seen as unfairly criminalizing the use of a privacy-focused software application, impacting law-abiding individuals. This has led to a lawsuit challenging the designation of Tornado Cash.
The case as a precedent for cryptocurrency regulation
The ongoing case illustrates the growing tensions between the need for regulatory control in the cryptocurrency industry and the fundamental rights of free speech and privacy. The outcome of this case could set an important precedent for the future regulation of cryptocurrencies and the use of economic penalties in the digital technology era.
### News source: blockchain.news