Infringement on Tornado Cash Code Raises Concerns Overreach from Regulators
Summary:
The recent blacklisting of Tornado Cash by the U.S. Department of the Treasury has brought to light the constitutional protection afforded to code under the First Amendment. Despite regulators' claims of illegal activity, the use of code itself is not inherently unlawful, as established by legal precedent. The arrest of a developer involved with Tornado Cash also raises questions about the criminal liability for writing code, further emphasizing the need for a balanced approach in the regulation of decentralized finance (DeFi). Building DeFi infrastructure along regulatory lines is crucial, but it should not lead to a complete ban on privacy tools or unrestricted access to user information. Ultimately, a transparent and compliant approach will restore confidence and pave the way for the widespread adoption of DeFi.