The crypto industry is reacting to a recent appellate court decision stating that the US Department of the Treasury's OFAC overstepped by sanctioning smart contracts tied to Tornado Cash. The Fifth Circuit ruled on November 26 that essential legal principles were violated in the sanctions imposed in 2022. While this does not entirely conclude the Treasury's case, plaintiffs supported by Coinbase may see a policy shift beginning in 2025. Bill Hughes of Consensys indicated that the ruling might influence future Treasury policies, especially under a potential Trump administration. However, immediate changes before Trump takes office seem unlikely. The context of Trump's prior engagements, particularly regarding sanctions, adds complexity to how his administration might handle similar issues, including the prosecution of Tornado Cash developers currently underway. Earlier, in August 2022, OFAC had alleged that Tornado Cash played a role in laundering over $7 billion in crypto, including funds linked to North Korean activities.

Source 🔗