Coinbase criticizes U.S. Treasury for delisting Tornado Cash without a guarantee against future sanctions

From Yahoo Finance: 2025-03-24 09:24:00

Coinbase’s chief legal officer criticized the U.S. Treasury’s move to moot a court judgment on Tornado Cash’s delisting from sanctions. The Treasury removed Tornado Cash from its blacklist but didn’t guarantee against future sanctions, prompting concerns of a renewed blacklisting and sanctions.

The Treasury argued that delisting Tornado Cash resolved the issue and a final court ruling was unnecessary. Coinbase-funded court case challenges this stance, highlighting the need for assurance against future sanctions. Grewal referenced a similar case where voluntary cessation didn’t prevent recurrence of challenged conduct.

Grewal cited past cases where voluntary cessation didn’t prevent recurrence of challenged conduct, emphasizing the need for assurance against future sanctions. The Treasury’s delisting without a guarantee not to re-sanction Tornado Cash raises concerns and will be addressed in court.

The U.S. Treasury’s removal of Tornado Cash from the blacklist didn’t come with a commitment not to re-sanction it. Grewal emphasized the need for assurance against future sanctions and will bring this to the district court’s attention. Update includes a link to the court filing for reference.

Read more: Coinbase CLO Critiques U.S. Treasury’s Claim That Court Ruling on Tornado Cash Is Moot