Blockchain Association supports Coin Center’s lawsuit on Tornado Cash sanctions with an amicus brief.

The Blockchain Association, based in Washington DC, has filed an amicus brief in support of crypto think tank Coin Center’s lawsuit against the US Treasury Department. The lawsuit relates to the Treasury’s sanctions against Tornado Cash, a crypto mixer, which were imposed in August. The Treasury claimed that Tornado Cash had laundered over $7 billion worth of virtual currency, and banned Americans from using it. Coin Center then sued the Treasury in October, arguing that Tornado Cash has legitimate use cases. The Blockchain Association, together with the DeFi Education Fund, has now filed a brief in the US District Court for the Northern District of Florida, stating that the sanction raises “serious regulatory and constitutional questions.”

The CEO of the Blockchain Association, Kristin Smith, said in a statement: “It’s critical to recognize that Tornado Cash is simply a tool – punishing the tool itself simply because it can be used by anyone, including bad actors, runs contrary to the values this country was founded upon. Blockchain Association stands with Coin Center, advocating for the responsible and lawful use of blockchain technology. Regulatory actions should only be targeted at bad actors who abuse this tool for illegal purposes.”

Financial privacy

The association argued that financial privacy is essential for the digital asset industry. It said that many digital asset holders have turned to privacy-protecting tools like Tornado Cash to avoid broadcasting their finances to the world. Such tools allow users to reclaim privacy that would be available as a matter of course in other contexts, while retaining the benefits that come with using blockchain technology. The association also argued that Tornado Cash helps users protect themselves from bad actors, specifically if a user’s transaction shows wealth. The association stated that “when the blockchain contains enough information for a user’s identity to be unmasked, these attacks can spill into the physical world, where digital asset users have been the victims of crimes ranging from simple robberies to home invasions, kidnappings, torture, and even murder.”

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Bitcoin

The Rise of Bitcoin ETFs: A Wild Ride into Crypto Investing 🚀

The recent surge in bitcoin's price, surpassing its previous all-time high of $69,000, may be surprising to corporate...

News

ETH developers have announced that testing for the Dencun hard fork went smoothly, and they will be setting the official date for the fork on February 8th.

The highly anticipated Dencun upgrade for Ethereum, which promises to greatly decrease fees for L2s, is set to launch...

BlockChain

Vitalik Buterin: Ethereum Upgrades may Enable Full Nodes on Mobile Devices

According to Ethereum co-founder Vitalik Buterin, there is a possibility that Ethereum full nodes will become extreme...

DeFi

FloorDAO forced to send $2.5 million to splinter faction due to investor disagreements.

FloorDAO, a thriving crypto group specializing in NFT finance, has recently restructured into two distinct entities t...

Opinion

Exclusive Interview with ConsenSys How will MetaMask Snaps change the Web3 ecosystem?

What groundbreaking changes will Snaps bring to MetaMask? How much growth will it bring to non-EVM ecosystems? And ho...

DeFi

DeFi set for 'major resurgence,' according to Boris Revsin of Tribe Capital

The managing partner of the $1.6 billion investment firm emphasizes the importance of infrastructure in unleashing th...