KeyTakeawys:
U.S. Treasury defies court docket ruling on Twister Money sanctions, elevating authorized issues. Coinbase’s Paul Grewal criticizes Treasury’s response to court docket’s resolution on Twister Money. Treasury plans to assessment Twister Money itemizing, regardless of court docket ruling towards sanctions.
Coinbase’s Chief Authorized Officer, Paul Grewal, has raised issues concerning the U.S. Treasury’s response to a latest court docket ruling on Twister Money sanctions. Grewal’s feedback deal with the Treasury’s intention to defy components of the Fifth Circuit Court docket of Appeals’ resolution, which challenged the legality of the sanctions imposed on the cryptocurrency mixing service, Twister Money.
In December 2024, the Fifth Circuit Court docket of Appeals dominated that the U.S. Treasury Division’s sanctions on Twister Money have been illegal. Particularly, the court docket decided that the sensible contracts related to Twister Money didn’t qualify as “property” underneath the Worldwide Emergency Financial Powers Act (IEEPA). The court docket’s ruling was primarily based on the truth that Twister Money’s sensible contracts are immutable and can’t be altered, thereby exempting them from the sanctions usually positioned on property.
Regardless of this ruling, the U.S. Treasury has signaled that it’s going to not absolutely comply. As a substitute, it proposed a remand for additional proceedings. The Treasury’s stance has been criticized by Coinbase’s Paul Grewal, who expressed disappointment over the company’s response. Grewal argued that whereas the court docket had dismissed the Treasury’s authority to listing Twister Money on the Specifically Designated Nationals (SDN) listing, the Treasury was nonetheless contemplating partial delisting.
Paul Grewal’s Criticism of the Treasury’s Response
In a collection of tweets, Grewal questioned the Treasury’s intentions, noting that the company’s refusal to totally abide by the court docket’s order indicated a disregard for the court docket’s authorized interpretation.
Grewal emphasised that the Treasury’s actions, equivalent to partially delisting Twister Money, would solely extend the authorized points that led to the case within the first place. He identified that the Treasury had assured that nationwide safety issues can be addressed, however he maintained that the company was overstepping its authority.
Grewal’s criticism factors out ongoing issues concerning the Treasury’s interpretation of its authorized powers and its method to cryptocurrency laws. He highlighted that the Treasury’s actions might create additional authorized issues somewhat than resolve them.
Treasury’s Subsequent Steps Amid Authorized Uncertainty
Regardless of the court docket’s ruling, the U.S. Treasury stays decided to handle the problem of Twister Money’s itemizing. The Treasury plans to assessment the matter with the Workplace of Overseas Belongings Management (OFAC) and should take away Twister Money from the SDN listing. Nonetheless, no particular timeline has been offered for these actions.
Whereas the Treasury strikes ahead with its proposed assessment, Coinbase and different plaintiffs within the case intend to submit a proper reply to make sure full compliance with the court docket’s resolution. The continuing authorized battle between the U.S. Treasury and Twister Money’s supporters has raised essential questions concerning the regulation of decentralized applied sciences and their intersection with U.S. sanctions legal guidelines.
