The crypto policy group in Washington, DC has filed a new court filing, criticizing the Treasury Department’s sanctions against Tornado Cash.
The Blockchain Association and DeFi Education Fund described the sanctions imposed last year as “unprecedented and illegal.”
Two Groups Reaction to Tornado Cash Sanctions
Last year, the Treasury Department imposed sanctions on Tornado Cash, the open-source software used to anonymize transactions on the Ethereum Blockchain. However, the Treasury Department, which has been sued by crypto advocates like Coin Center due to sanctions, had to withdraw its move.
Blockchain Association presented a legal briefing with the DeFi Education Fund to support Coin Center’s case. Blockchain Association CEO Kristin Smith stated that Tornado Cash is just a tool and can be used by anyone, including malicious people, emphasizing that punishing the tool itself goes against the country’s core values.
The groups argued that regulatory measures should only target malicious actors and prevent this tool from being misused for illegal purposes. Crypto exchanges like Coinbase have also supported a similar lawsuit, allegedly exceeding the Treasury Department’s authority by targeting the software.
In these cases, crypto policy groups and crypto advocates argue that the Treasury Department’s imposition of sanctions targeting Tornado Cash and similar tools is a move beyond the government’s authority.
