TechFlow news — On November 27, the U.S. Fifth Circuit Court of Appeals overturned a lower court ruling, determining that the Office of Foreign Assets Control (OFAC) exceeded its authority when sanctioning the immutable smart contracts of Tornado Cash—a significant victory for the protocol and its users. In their opinion, the three-judge panel stated that while the Treasury Department has the authority to act against "property," Tornado Cash's smart contracts, being immutable and neither controllable nor ownable, do not constitute property under the International Emergency Economic Powers Act (IEEPA).
Coinbase Chief Legal Officer Paul Grewal said these smart contracts must now be removed from the sanctions list, allowing U.S. users once again to legally utilize this privacy-preserving protocol. The appellate court has directed the Texas District Court to grant the motion for partial summary judgment filed by plaintiffs-appellants including Joseph Van Loon.
