Coin Center claims that the Tornado Cash Ban imposed by OFAC “Exceeds Statutory Authority” and intends to “Engage” with US Watchdog.
In a blog post on August 15, the non-profit Coin Center, which focuses on policy concerns relating to crypto assets, said that the group is investigating the validity of the most recent Tornado Cash penalties implemented by the Office of Foreign Asset Control of the U.S. Treasury Department (OFAC). By considering autonomous code as a “person,” according to the article written by Jerry Brito and Peter Van Valkenburgh of Coin Center, “OFAC exceeds its legislative jurisdiction.”
Insisting that “OFAC Has Overstepped Its Legal Authority,” Coin Center
In a blog post that was posted on Monday, the executive director of Coin Center, Jerry Brito, and the head of research, Peter Van Valkenburgh, discussed whether or not autonomous code or a smart contract may be regarded as a recognized “person.” Brito and Valkenburgh of Coin Center think that by sanctioning Tornado Cash, the U.S. government meant to send some kind of message. One that informs inhabitants of the United States that certain devices and programs “should not be utilized by Americans even for totally acceptable reasons.”
According to the Coin Center blog post, “As we suspected, we believe that OFAC has overstepped its legal authority by adding certain Tornado Cash smart contract addresses to the SDN List, that this action may violate constitutional rights to due process and free speech, and that OFAC has not adequately acted to mitigate the foreseeable impact on innocent Americans.”
Additionally, Coin Center thinks that OFAC “exceeds its legislative power under IEEPA” in designating certain autonomous contract addresses. According to Coin Center, IEEPA might be interpreted in an ambiguous and wide way in order to target first amendment-protected expression. The blog post questions if there should be a limitation on the dissemination of speech if the SDN List develops into a list of certain open source protocols and apps that are “restricted” and continues to grow.
Coin Center adds that it intends to communicate with the watchdog of the U.S. Treasury Department, exchange ideas, and learn what the OFAC authorities think of the predicament. Coin Center intends to keep members of Congress informed about the issue after they enquired about it, according to the non-profit. Additionally, Coin Center wants to assist legitimately removing ethereum off the network any innocent Americans who may have money tied within the system. According to the non-profit organization, the group is discussing legal actions to “advocate a judicial challenge to this decision.”