BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Sponsored
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Sponsored
Home Regulation

Coinbase-Backed Motion Challenges Tornado Cash Sanctions with Four Crucial Arguments

by Dan K
May 25, 2023 - 11:30 am
in Regulation
Six plaintiffs, backed by Coinbase, challenge U.S. Treasury’s sanctions on Tornado Cash.

Table of Contents

  • Coinbase-Backed Advocacy to Lift Tornado Cash Sanctions
  • Coinbase’s Standpoint and the Group Behind the Filing
  • Four Key Arguments Presented
  • Initial Sanctions on Tornado Cash

Coinbase-Backed Advocacy to Lift Tornado Cash Sanctions

Six individuals, determined to overturn the United States Treasury’s decision to sanction Tornado Cash, have presented four robust arguments in support of their motion. The narrative is not about creating unique rules for emerging technology, but an issue of alleged government overreach and potential First Amendment violations.

Coinbase’s Standpoint and the Group Behind the Filing

Coinbase’s chief legal officer, Paul Grewal, brought the arguments into the limelight via a Twitter thread, suggesting that the government is misusing a property sanctions statute to restrict open-source software, contradicting the law’s original intentions.

Coinbase has publicly supported the lawsuit against the U.S. Department of Treasury, filed initially on Sept. 8, 2022. The six plaintiffs behind the filing include Joseph Van Loon, Tyler Almeida, Alexander Fisher, Preston Van Loon, Kevin Vitale, and Nate Welch. The filing revealed that the majority of the group had prior interaction with Tornado Cash.

Four Key Arguments Presented

The first argument centers on the Treasury’s effort to label Tornado Cash as a foreign “national,” a necessary step to validate its action. This classification, according to the plaintiffs, contradicts the Treasury’s own definitions and testing methods, therefore making it unfounded.

The second contention is that the open-source smart contracts that empower Tornado Cash cannot be considered property as they cannot be owned.

Even if these smart contracts were recognized as property, the plaintiffs’ third argument underscores that no Tornado Cash entity has any vested “interest” in them, hence the Treasury lacks the authority to impose sanctions.

The final argument suggests that even if the Treasury had the authority, sanctioning Tornado Cash could infringe on the First Amendment. The Treasury cannot justify this action by proposing Tornado Cash users exercise free speech elsewhere.

Initial Sanctions on Tornado Cash

The Treasury first imposed sanctions on a number of addresses associated with Tornado Cash on August 8, 2022, shortly after the user interface code was open-sourced. This lawsuit brings to light the complexities and challenges of regulating digital assets and blockchain technology.

Tags: AltcoinsCoinbaseExchangeRegulation
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Image of Crypto.com logo with a background displaying Monetary Authority of Singapore insignia.

Crypto.com Earns License as Payment Institution in Singapore

June 1, 2023

Singapore's Crypto.com bolsters its global regulatory standing, securing a major payment institution license from the Monetary Authority of...

Gemini co-CEOs Cameron and Tyler Winklevoss discussing potential opportunities in the UAE crypto market.

Gemini Exchange Heads East: Winklevoss Twins Seek UAE Crypto License Amidst Regulatory Uncertainty in the U.S.

June 1, 2023

Gemini exchange gears up to penetrate the UAE market. A move influenced by UAE's burgeoning crypto enthusiasm and...

Bybit logo with Canadian flag overlay indicating the company's exit from the Canadian market

Bybit Joins List of Crypto Firms Exiting Canada Amid Regulatory Changes

May 31, 2023

Bybit discontinues services in Canada following new crypto regulations, contributing to a growing list of crypto companies exiting...

Screenshot of a tweet from John Reed Stark, warning about the potential consequences for crypto influencers manipulating the market.

Ex-SEC Chief Warns Crypto Influencers: Price Manipulation Could Lead to Prosecution

May 31, 2023

Crypto influencers are under scrutiny from the US Securities and Exchange Commission for their role in promoting scam...

Press Releases

pulse x

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse x

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse x

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

pulse x

Hong Kong Web3 Festival 2023, Hong Kong’s Largest-Ever Premier Digital Asset Event, is here. A Platform for Worldwide Leaders to Discuss the Latest Web3 and Blockchain Trends

May 8, 2023

Join Hong Kong Web3 Festival 2023, the largest-ever digital asset event, co-hosted by Wanxiang Blockchain Labs and HashKey Group.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise