In this episode of the Crypto Exchange, Ethan Ostroff is joined by colleagues Pete Jeydel and Matt Orso to discuss a recent landmark decision from the Fifth Circuit regarding Tornado Cash. The court ruled that the Office of Foreign Assets Control (OFAC) exceeded its authority by sanctioning immutable smart contracts created by Tornado Cash. This decision has significant implications for the regulation of decentralized finance (DeFi) technologies under the International Emergency Economic Powers Act (IEEPA).

The group discusses the Fifth Circuit’s analysis, highlighting the court’s application of the Loper Bright decision and its refusal to defer to OFAC’s broad interpretation of the term “property.” They highlight ongoing criminal prosecutions related to Tornado Cash and the potential future impact of this ruling on OFAC’s regulatory authority and enforcement practices.

Transcript: Unpacking the Fifth Circuit’s Landmark Tornado Cash Decision (PDF)

Photo of Ethan G. Ostroff Ethan G. Ostroff

Ethan’s practice focuses on financial services litigation and compliance counseling, as well as digital assets and blockchain technology. With a long track record of successful litigation results across the U.S., both bank and non-bank clients rely on him for comprehensive advice throughout their

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Ethan’s practice focuses on financial services litigation and compliance counseling, as well as digital assets and blockchain technology. With a long track record of successful litigation results across the U.S., both bank and non-bank clients rely on him for comprehensive advice throughout their business cycle.

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Photo of Peter Jeydel Peter Jeydel

Pete helps clients navigate today’s increasingly complex regulatory and enforcement environment at the intersection of national security, international trade, finance, and technology. He works with clients to identify innovative solutions to business problems arising from these often daunting and highly technical regulations, based

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Pete helps clients navigate today’s increasingly complex regulatory and enforcement environment at the intersection of national security, international trade, finance, and technology. He works with clients to identify innovative solutions to business problems arising from these often daunting and highly technical regulations, based on a clear understanding of the government’s expectations and priorities.

Read more about Peter JeydelEmail
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