The US Treasury, under a Trump administration, may bring reform to how courts handle crypto mixer-related incidents, following OFAC’s overreach in the Tornado Cash sentencing.
Many in the crypto industry are still reeling from an appellate court decision that the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) overstepped in sanctioning certain smart contracts associated with the cryptocurrency mixer Tornado Cash.
On Nov. 26, the US Court of Appeals for the Fifth Circuit ruled that OFAC “exceeded its statutory authority” when it sanctioned some of Tornado Cash’s immutable smart contracts in 2022.
Though the ruling did not close the door on the Treasury Department’s case, the six plaintiffs backed by Coinbase may see policy changes in 2025 impacting how the courts handle addresses associated with crypto mixers.
