The Washington DC-based Blockchain Association has filed an amicus brief in support of the crypto think tank Coin Center’s lawsuit against the US Treasury Department over its sanctions against Tornado Cash. The Treasury sanctioned the crypto mixer in August, claiming that it laundered more than $7 billion worth of virtual currency and effectively banning Americans from using it. However, Coin Center filed a lawsuit against the Treasury in October over that sanction and said that the service has legitimate use cases.
Recently, the Blockchain Association, along with the DeFi Education Fund, has argued in its brief on Friday in the US District Court for the Northern District of Florida, that the sanction has raised “serious regulatory and constitutional questions.” The association said financial privacy is essential for the digital asset industry.
The association believes that Tornado Cash is a tool that is being used by bad actors. However, punishing the tool itself, because it can be used by anyone, including bad actors, runs contrary to the values this country was founded upon. Blockchain Association CEO Kristin Smith stated, “Blockchain Association stands with Coin Center, advocating for the responsible and lawful use of blockchain technology. Regulatory actions should only be targeted at bad actors who abuse this tool for illegal purposes.”
The association further claimed that financial privacy is essential for the digital asset industry. Many digital asset holders have turned to privacy-protecting tools like Tornado Cash to avoid broadcasting their finances to the world. Such tools allow users to reclaim privacy that would be available as a matter of course in other contexts, while retaining the benefits that come with using blockchain technology.
The association also pointed out that Tornado Cash helps users protect themselves from bad actors, specifically if a user’s transaction shows wealth. The association argued that when the blockchain contains enough information for a user’s identity to be unmasked, these attacks can spill into the physical world, where digital asset users have been the victims of crimes ranging from simple robberies to home invasions, kidnappings, torture, and even murder.
The Blockchain Association has filed an amicus brief in support of Coin Center’s lawsuit against the US Treasury Department over its sanctions on Tornado Cash. The association believes that the sanction has raised serious regulatory and constitutional questions. The association further stated that Tornado Cash is a tool that is being used by bad actors. However, punishing the tool itself simply because it can be used by anyone runs contrary to the values that this country was founded upon. The association advocates for the responsible and lawful use of blockchain technology, and regulatory actions should only be targeted at bad actors who abuse this tool for illegal purposes.