Headquartered in Washington DC, the Blockchain Association has filed an amicus brief to support Coin Center’s legal challenge against the US Treasury Department.
The brief aims to address the sanctions imposed on Tornado Cash. In August, the Treasury sanctioned the crypto mixer, alleging that it had facilitated the laundering of over $7 billion worth of virtual currency and subsequently banned its use by Americans.
Coin Center, a prominent crypto think tank, filed a lawsuit against the Treasury in October, contending that Tornado Cash serves legitimate purposes. Their argument focused on the “serious regulatory and constitutional questions” raised by the sanction.
Treating a Tool as Criminal
The CEO of the Blockchain Association, Kristin Smith, emphasized that Tornado Cash is merely a tool. Also, punishing it solely because it can be used by both good and bad actors contradicts the fundamental values on which the country was founded. 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.”
Preserving Financial Privacy
The Blockchain Association stressed the importance of financial privacy within the digital asset industry. It highlighted the fact that many digital asset holders resort to privacy-protecting tools like Tornado Cash to avoid revealing their financial information to the public.
Furthermore, these tools allow users to regain the privacy that is otherwise inherent in traditional financial contexts. Simultaneously, users can still benefit from the use of blockchain technology.
Shielding Users from Malicious Intent
Additionally, the association argued that Tornado Cash plays a crucial role in protecting users from malicious actors, particularly in situations where a user’s transaction reveals their wealth.
Moreover, when the blockchain exposes enough information to reveal a user’s identity, these attacks can extend beyond the digital realm and give rise to real-world crimes.
The association pointed out incidents ranging from simple robberies to home invasions, kidnappings, torture, and even murder, where digital asset users have fallen victim to such crimes.
Through its support of Coin Center’s lawsuit, the Blockchain Association also strives to foster responsible and lawful utilization of blockchain technology. In doing so, the association aims to promote a secure and trustworthy environment for the adoption of blockchain technology.
Read More:
Binance Market Share Decline caused by Regulatory Pressure
Investors In Dogecoin Lawsuit Accuse Elon Musk of Insider Trading