According to Odaily, the Stanford Blockchain Club has voiced significant concerns regarding the U.S. government's decision to hold Tornado Cash developers Roman Storm and Roman Semenov accountable under traditional federal fund transfer laws. The organization argues that applying outdated laws, such as the 1960 statute, to modern decentralized blockchain technology is akin to forcing a square peg into a round hole. Tornado Cash operates through immutable smart contracts, enabling users to conduct transactions anonymously without intermediaries. This system allows users complete control over their tokens from start to finish, contrasting with traditional custodial services.
The club emphasized that the Department of Justice's active application of 18 U.S.C. § 1960 in this case raises issues that extend far beyond the immediate context of blockchain technology. They argue that this approach bypasses the democratic process and undermines the constitutional framework that grants Congress legislative power and the executive branch discretionary enforcement authority. The concerns highlight the tension between evolving technologies and existing legal frameworks, suggesting a need for updated regulations that better align with the realities of decentralized systems.