Coinbase Chief Legal Officer Paul Grewal stated in a post on X: "Privacy rights have won. Today, the Fifth Circuit Court of Appeals ruled that the U.S. Treasury's sanctions against Tornado Cash smart contracts are illegal. This is a historic victory for cryptocurrency and for everyone concerned with defending freedom. Coinbase is proud to help lead this important challenge. These smart contracts must now be removed from the sanctions list, and Americans will be allowed to use this privacy-preserving protocol again. In other words, the government's overreach cannot continue. No one wants criminals to use crypto protocols, but Congress did not authorize completely blocking open-source technology just because a small number of users are bad actors. These sanctions extended the Treasury's power to an unrecognizable degree, and the Fifth Circuit agreed. Specifically, the court ruled that while the Treasury has the authority to act against 'property,' the core open-source, immutable smart contracts of Tornado Cash cannot be owned by anyone and therefore do not constitute 'property' subject to sanctions. We appreciate the court's careful consideration of this matter. Looking ahead, Coinbase will tirelessly advocate for clear and fair rules to foster innovation in the U.S. and abroad."