This is reported by the Blockchain Association June 2nd that it has filed an amicus brief in support of a CoinCenter case defending coin mixer Tornado Cash.
Kristin Smith, CEO of the Blockchain Association, said:
“… Tornado Cash is just a tool – punishing the tool itself simply because it can be used by anyone, including bad actors, goes against the values [the U.S.] on which is founded.”
Smith said the Blockchain Association “stands behind Coin Center,” adding that her group supports the “responsible and lawful” use of blockchain technology.
Software cannot be sanctioned
Marisa Tashman Coppel, Policy Advisor for the Blockchain Association, comment further, arguing that the Treasury and the Office of Foreign Assets Control (OFAC) could not legally penalize software like Tornado Cash.
She claimed that OFAC could only sanction individuals and property. She explained that Tornado Cash is not owned because it is not owned by any entity and said this argument holds even if Tornado Cash’s DAO is considered a person. Tornado Cash is “completely different” from its DAO and would exist without the DAO, she claimed.
Copel said OFAC violated free speech and due process by endorsing the Tornado Cash coin mixer protocol and failed to give individuals using the service fair notice before imposing restrictions.
The Treasury and OFAC will respond before the court makes a ruling.
There are two more Tornado Cash lawsuits pending
The Blockchain Association briefing concerns Coin Center’s lawsuit against OFAC and in defense of Tornado Cash. That lawsuit was filed in October 2022.
CoinCenter’s lawsuit followed an earlier lawsuit in September 2022 in which six individuals, including Ethereum developer Preston Van Loon, Joseph Van Loon, and two Coinbase employees, sued OFAC’s handling of Tornado Cash.
The Blockchain Association also submitted an amicus brief in support of Van Loon et al. in April. Coppel said the Blockchain Association made similar arguments in both briefings.
Plaintiffs in Van Loon cs. submitted further arguments on 24 May 2023.
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