Stanford Blockchain Club slams DOJ’s use of archaic laws in Tornado Cash case
Stanford Blockchain Membership slams DOJ’s utilize of former rules in Twister Cash case Stanford Blockchain Membership slams DOJ’s utilize of former rules in Twister Cash case
Stanford Blockchain Membership challenges the DOJ's prosecution of Twister Cash, arguing for legislative readability.
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The Stanford Blockchain Membership has issued a scathing critique of the US Department of Justice’s (DOJ) prosecution of Twister Cash builders Roman Storm and Roman Semenov, calling it an overreach of outdated-favorite federal money transmission rules.
In its file, titled “Twister Cash and the Boundaries of Cash Transmission,” the club challenged the DOJ’s utilize of 18 U.S.C. § 1960, a statute geared in direction of unlicensed money-transmitting agencies, to payment the builders of Twister Cash, a decentralized Ethereum-based fully protocol.
The DOJ’s 2023 indictment labeled Twister Cash an “unlicensed money transmitting industry” for enabling customers to anonymize crypto transactions.
The Stanford Blockchain Membership argued that the statute, written before the creation of blockchain know-how, fails to take care of the nuances of decentralized protocols savor Twister Cash, which feature through immutable natty contracts with out intermediaries or custodians.
In accordance with the file:
“The DOJ’s aggressive application of 18 U.S.C. § 1960 raises broader questions about the dangers of stretching statutory language to quilt unique applied sciences. This capacity invitations unelected officers and the judiciary to overstep their constitutional bounds, bypassing Congress’ authority to legislate.”
The file emphasised the constitutional implications of the utilize of executive enforcement to manipulate emerging applied sciences. It warned that such actions circumvent the democratic task and threat stifling innovation by conflating honest utilize circumstances of privateness-maintaining tools with illicit exercise.
Stanford College, known for its management in both honest and technological innovation, has a history of enticing with advanced regulatory challenges. The blockchain club’s file continues this tradition by delving into the tension between privateness rights and regulatory oversight within the digital finance condo.
The Twister Cash case highlights a growing debate about financial privateness and the threat of these contemporary applied sciences being misused by sinful actors.
Advocates, including the Stanford Blockchain Membership, argue that protocols savor Twister Cash fulfill legitimate privateness wants by allowing participants to offer protection to their identities in transactions. In the intervening time, critics contend that such tools facilitate money laundering and other illegal actions.
The file’s launch marks a well-known contribution to ongoing discussions about how the US honest diagram can adapt to DeFi applied sciences. It stays to be viewed whether or now no longer the judiciary will set in solutions such critiques as it continues to grapple with the complexities of blockchain regulation.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his abilities worldwide for over a decade. That specialize in financial journalism, he now specializes in crypto reporting.
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Twister Cash is a decentralized, non-custodial privateness solution built on Ethereum.
Ethereum is a decentralized, launch-source blockchain platform that enables the creation of natty contracts and decentralized functions (DApps).
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