Coinbase CLO Goes Off on Treasury: You Won’t Believe What He Said!

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Coinbase CLO Goes Off on Treasury: You Won’t Believe What He Said!

So, here we are. Coinbase’s Chief Legal Officer, Paul Grewal, is throwing some serious shade at the U.S. Treasury. I mean, can you believe it? They’re just ignoring a court ruling like it’s a bad Yelp review. 🙄

US Treasury’s Response to the Court Ruling

The Fifth Circuit Court recently decided that the Treasury’s actions were about as lawful as a three-legged dog in a race. They slapped Tornado Cash onto the Specially Designated Nationals (SDN) list, but the court said, “Hold on a second! That smart contract isn’t even ‘property’ under the International Emergency Economic Powers Act (IEEPA).” It’s like trying to put a square peg in a round hole, folks! 🥴

But wait, the Treasury’s like, “Nah, we’re not really going to follow that ruling. We’d rather just suggest a remand for more proceedings.” Because who doesn’t love a good bureaucratic shuffle? It’s like watching paint dry, but with more paperwork! 🎨

In a series of tweets that could rival a reality TV show, Grewal expressed his disappointment. He’s like, “The court said you can’t do that, but you’re still trying to partially delist Tornado Cash? What’s next, a magic show?” 🎩✨

“They say trust us,” Grewal quipped, referring to the Treasury’s assurances that they’ll comply, but only if it doesn’t mess with national security. It’s like saying, “Trust me, I won’t eat the last slice of pizza,” while eyeing it like a hawk! 🍕

Court Decision on Tornado Cash

The Fifth Circuit made its decision in December 2024, ruling that Tornado Cash’s smart contracts are not properties that can be sanctioned. They’re immutable, folks! You can’t just erase them like a bad haircut! 💇‍♂️

They distinguished between immutable smart contracts and those that can be changed, which could be used for shady stuff. So, the court didn’t question the Treasury’s ability to sanction Tornado Cash as a whole, just how they treated those smart contracts. It’s like saying, “You can have the cake, but don’t touch the frosting!” 🎂

The ruling was a big ol’ slap in the face to the Treasury’s case. But don’t get too excited; they didn’t give a blanket ruling on the legality of the sanctions. They just said those immutable contracts don’t fit the definition of property under IEEPA. So, no blocking them as part of the sanctions process. It’s like a half-hearted apology! 🙈

Treasury’s Proposed Action Moving Forward

Despite the court ruling, the Treasury is tiptoeing around like it’s walking on eggshells. They’re planning to remand the issue for further review. It’s like they’re saying, “We’ll get to it… eventually.” ⏳

Grewal’s not having it, though. He’s like, “Instead of just complying, you’re looking for ways to keep the sanctions on Tornado Cash? This is the same nonsense that got us here in the first place!” It’s like a bad relationship that just won’t end! 💔

But don’t worry, the plaintiffs, including Coinbase, are gearing up to file a reply. They’re not going to let the Treasury just waltz away from the court’s decision. It’s like a legal game of whack-a-mole! 🎉

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2025-03-19 07:30