Coinbase Lawyer Highlighted Critical Win for Crypto Industry

U.Today - In a landmark decision, the Fifth Circuit Court ruled that in the U.S. it is illegal for the Treasury to impose sanctions on Tornado Cash smart contracts. This ruling supports liberty and privacy and represents a major win for the crypto community. Coinbase (NASDAQ:COIN ), a major participant in this legal battle, celebrated the decision as a turning point for individual liberties and decentralized technology.

By removing Tornado Cash smart contracts from the list of sanctions, the court's ruling essentially permits U.S. citizens to reuse the procedure. An open-source tool for protecting privacy called Tornado Cash was sanctioned on the grounds that it made illegal activity possible.

However, the court determined that the Treasury had overreached itself because these immutable smart contracts are not considered property under the sanctions framework because they cannot be owned. Coinbase emphasized that outright banning open-source technology is not the answer, even though no one condones criminals abusing crypto protocols.

The decision reaffirms that Congress did not intend to target a decentralized tool because of the behavior of a small percentage of users. By defending the rights of blockchain developers and users, this ruling acts as a vital check on government overreach. The court's careful review was appreciated, and Coinbase's Chief Legal Officer Paul Grewal underlined the company's ongoing dedication to promoting just and open crypto laws.

He emphasized the significance of encouraging creativity while maintaining accountability, a balance that this case aids in achieving. Coinbase promised to continue working to create a transparent and innovative regulatory environment in the United States and beyond.

This triumph establishes a standard for how decentralized technologies ought to be handled in legal and regulatory frameworks, not only for Tornado Cash but also for the larger cryptocurrency sector. A landmark victory for liberty and cryptocurrency is certainly a big win for the industry and the freedom of digital assets.

Source: Investing.com