Skip to content
- The U.S. Treasury filed another late Friday pleading against Tornado Cash.
- Coinbase’s Chief Legal Officer argues that power does not step back voluntarily.
- Treasury’s move to delist Tornado Cash does not guarantee it will not return.
The U.S. Treasury has filed another legal document against Tornado Cash. This follows its previous decision to delist the platform. Despite the removal, Coinbase and legal experts argue that the matter is far from settled. The debate now centers on whether the delisting is a genuine retreat or a strategic move to avoid a final judgment.
Coinbase Chief Legal Officer has spoken on the issue. As per him, power never gives up easily. Instead, it holds on to it until it is forced to do otherwise. This contention questions whether the Treasury’s actions necessarily imply that it is the end of its pursuit of Tornado Cash.
Legal precedent contradicts the argument that a case is moot once an action has been reversed. Courts have ruled that voluntary actions do not always bar future actions. The Treasury’s failure to provide assurances is concerning and indicates that it might have hidden agendas.
Past Cases Show Reversals Aren’t Enough
There are prior Supreme Court cases that have addressed similar facts. In one, the FBI removed a plaintiff from the No Fly List. It also made a declaration that it would not reinstate him on the list. In spite of the assurance, the court held that the case was not moot.
A second case involved an agency that withdrew a decision but refused to close the door on taking it up again sometime in the future. The Fifth Circuit did not agree with the agency’s argument that the withdrawal ended the court case. The court stated that absent an assurance of no future action, a case cannot be dismissed.
By this logic, the Treasury’s decision to delist Tornado Cash does not put the issue to rest. Short of an absolute guarantee that the platform will not be relisted, legal challenges will continue.
Coinbase Challenges Uncertainty in Legal Battle
The Treasury did not say that Tornado Cash will not be added to the sanctions list again. The absence of such assurance fuels speculation that the agency can do the same thing in the future. Attorneys state that this ambiguity weakens the Treasury’s case.
This is the argument that will be placed before the court by Coinbase’s lawyers. They will emphasize the need to have a final ruling so that future actions can be avoided. The ruling in this case can act as a guideline for government agencies to deal with such situations in the future.
Meanwhile, the battle in the courts continues. The court has to decide whether the Treasury’s latest move is enough or whether additional action needs to be taken. The decision could shape the future of financial rules in cyberspace.
Related Reading: Bitcoin Liquidity Trends: Will March or April See the Surge?
