ChainCatcher News: The Fifth Circuit Court of Appeals in the United States overturned a lower court's ruling, determining that the Office of Foreign Assets Control (OFAC) exceeded its authority in sanctioning the Tornado Cash immutable smart contract. This is a significant victory for the protocol and its users. The panel of three judges noted in their opinion that, while the Treasury has the authority to act against "property," the immutable nature of the Tornado Cash smart contract means it cannot be controlled or owned, and therefore does not constitute property under the International Emergency Economic Powers Act (IEEPA).
Coinbase Chief Legal Officer Paul Grewal stated that these smart contracts must now be removed from the sanctions list, allowing U.S. users to use this privacy-preserving protocol again. The appellate court has instructed the Texas District Court to approve the partial summary judgment motion filed by plaintiffs-appellants including Joseph Van Loon.
