KeyTakeawys:
U.S. Treasury defies court docket ruling on Twister Money sanctions, elevating authorized considerations. Coinbase’s Paul Grewal criticizes Treasury’s response to court docket’s choice on Twister Money. Treasury plans to overview Twister Money itemizing, regardless of court docket ruling towards sanctions.
Coinbase’s Chief Authorized Officer, Paul Grewal, has raised considerations in regards to the U.S. Treasury’s response to a latest court docket ruling on Twister Money sanctions. Grewal’s feedback concentrate on the Treasury’s intention to defy components of the Fifth Circuit Courtroom of Appeals’ choice, which challenged the legality of the sanctions imposed on the cryptocurrency mixing service, Twister Money.
In December 2024, the Fifth Circuit Courtroom 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 sometimes positioned on property.
Regardless of this ruling, the U.S. Treasury has signaled that it’s going to not totally comply. As an alternative, 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 record Twister Money on the Specifically Designated Nationals (SDN) record, 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, reminiscent of partially delisting Twister Money, would solely delay the authorized points that led to the case within the first place. He identified that the Treasury had assured that nationwide safety considerations can be addressed, however he maintained that the company was overstepping its authority.
Grewal’s criticism factors out ongoing considerations in regards to the Treasury’s interpretation of its authorized powers and its strategy to cryptocurrency rules. He highlighted that the Treasury’s actions may create additional authorized problems fairly than resolve them.
Treasury’s Subsequent Steps Amid Authorized Uncertainty
Regardless of the court docket’s ruling, the U.S. Treasury stays decided to deal with the problem of Twister Money’s itemizing. The Treasury plans to overview the matter with the Workplace of International Belongings Management (OFAC) and should take away Twister Money from the SDN record. Nonetheless, no particular timeline has been offered for these actions.
Whereas the Treasury strikes ahead with its proposed overview, Coinbase and different plaintiffs within the case intend to submit a proper reply to make sure full compliance with the court docket’s choice. The continued authorized battle between the U.S. Treasury and Twister Money’s supporters has raised necessary questions in regards to the regulation of decentralized applied sciences and their intersection with U.S. sanctions legal guidelines.
