Paul Grewal noted that the US Treasury Department's sanctions against Tornado Cash may conflict with the interpretation of current open source software laws. Grewal emphasized that software codes are not considered property.
Therefore, in order for the Treasury to regulate the use of open source software like Tornado Cash by American citizens, the department needs to obtain permission from Congress to do so. In addition, the Ministry of Finance itself recently turned to Congress with a request to fill the “gaps” in the legislation regarding software, the lawyer noted.
The disagreements provoke attempts by the Ministry of Finance to extend sanctions not only to developers, but also to users of Tornado Cash, says Grewal. In this regard, the lawyer emphasized the importance of complying with the laws without expanding their boundaries beyond recognition. He expressed confidence that the Fifth Circuit Court of Appeals will carefully review the Tornado Cash case and reach a fair decision.
Regulators from around the world accuse Tornado Cash of facilitating illegal activities. In March, Dutch authorities charged Tornado Cash co-founder Alexey Pertsev with laundering more than $1.2 billion. At the beginning of the year, another Tornado Cash co-founder, Roman Storm, began raising funds to cover legal costs in proceedings with the American authorities.
Source: Bits

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