In a significant turn of events, a federal court in Texas has ruled that the U.S. Treasury exceeded its authority in imposing sanctions on Tornado Cash, a decentralized encryption protocol. This is the second time the Treasury has failed to regulate immutable smart contracts.

What Does the Court Say?

The ruling confirms that the immutable smart contracts of #TornadoCash cannot be considered "property" under the International Emergency Economic Powers Act (IEEPA). According to the court: