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The U.S. Appeals Court ruled that OFAC's sanctions on TornadoCash were overstepping its authority, which could be a long-term positive for decentralized smart contract projects

The U.S. Appeals Court ruled that OFAC's sanctions on TornadoCash were overstepping its authority, which could be a long-term positive for decentralized smart contract projects

Bitget2024/11/27 07:29
UNI-0.01%ETH-0.05%

According to reports, local time, a U.S. appeals court ruled that OFAC's sanctions against TornadoCash were an overreach of authority. The court overturned the district court's ruling, stating that Tornado Cash's smart contracts are not "property" and therefore cannot be sanctioned. The Tornado Cash ruling pointed out that even when evaluated according to OFAC's broader definition of "any property", cryptocurrency mixing service providers still fall outside the regulatory scope because their smart contracts are neither ownable nor traditional contracts or services.

Cryptocurrency KOL DeFi Cheetah - e/acc commented that after Trump won the election, "the U.S. Federal Appeals Court ruled OFAC’s sanctions on TornadoCash as an overreach" shows that Trump’s friendly policies towards cryptocurrencies may have a deeper impact than we expected in the next four years. Other industry insiders analyzed that this change in ruling could be a long-term positive for the cryptocurrency industry, especially for projects and ecosystems based on smart contract types like Ethereum; it indicates blockchain projects with smart contract models neither belong to property nor possess traditional contracts or services—this definition exceeds part of regulatory sanction range. In 2022, OFAC designated Tornado Cash as a sanctioned entity prohibiting American individuals and companies hoping to do business in America from having financial dealings with them.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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