Power does not recede voluntarily. It's gasps and it gasps until it no longer can. @USTreasury filed yet another late Friday pleading against Tornado Cash. After grudgingly delisting TC, they now claim they've mooted any need for a final court judgment. But that's not the law, and they know it. 1/3
Under the voluntary cessation exception, a defendant’s decision to end a challenged practice moots a case only if the defendant can show that the practice cannot “reasonably be expected to recur.” Friends of the Earth, Inc. v. Laidlaw Environmental Services (TOC), Inc., 528 U.S. 167, 189, 120 (2000). Just last Term, the Supreme Court unanimously held in FBI v. Fikre, 601 U.S. 234 (2024), that the FBI did not moot a case even when it removed the plaintiff from the No Fly List and produced a declaration representing that he would not be placed on the No Fly List in the future. See id. at 242. 2/3
Relying on that decision, the Fifth Circuit rejected an agency’s argument that its withdrawal of a determination “unilaterally and avoid judicial review” did not moot the case, because the agency could decide to revisit the decision and issue a similar determination against the private party in the future. Lewis v. United States, 88 F.4th 1073, 1078-1079 (5th Cir. 2023). Here, Treasury has likewise removed the Tornado Cash entities from the SDN, but has provided no assurance that it will not re-list Tornado Cash again. That's not good enough, and will make this clear to the district court. 3/3
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They haven't gotten the message. Despite a huge week for crypto across the rest of the federal government, on this late Friday night over at @FDICgov staff still continue to resist basic transparency into Operation Chokepoint 2.0. A few stark examples: 1/5
One of our requests concerns FDIC’s representation in a hearing before the Court that the agency had conducted “due diligence” to ensure that no documents were destroyed. We asked FDIC to describe what example that due diligence was. But FDIC has repeatedly refused to do so, and now takes umbrage at the request to explain the basis of its assertion to the Court. 2/5
In response to our requests for FDIC guidance or policies on processing FOIA requests—directly relevant to our policy-or-practice claims—the agency has produced only snippets from a few documents that have little to nothing to do with the specific FOIA policies or practices that History Associates has challenged in its amended complaint. What exactly are they hiding? 3/5
A picture of deceit, obfuscation, and bad faith is coming into focus at @FDICgov. Today we’re reporting to the federal court that the agency once again stonewalled legitimate requests for information in our case, and that we’re moving to amend our FOIA complaint to address their violations of law. 1/6
When we filed our original request, we asked for all pause letters that were identified by the Office of Inspector General. Without telling us or the Court, FDIC limited their search for pause letters to only those “contained” in the report — so other pause letters may exist. When we asked them to fix their supposed “reasonable interpretation” and stop playing word games, they told us it would take at least a year. 2/6
Meanwhile, whistleblower reports of widespread misconduct at FDIC are growing louder and louder, with allegations of improperly labeling documents, refusing to search certain databases, and even spending tax-payer resources researching me. We asked FDIC about this, they did not respond. 3/6
As terrible as OCP2.0 itself was, @FDICgov's abuse of FOIA Exemption 8 to cover it up has arguable been even worse. If we want government accountability, we need government transparency. As explained below, FDIC's redactions of its response to our FOIA request pursuant to Exemption 8 reflect blatant misrepresentations. 1/6
Tl; dr: FDIC lied. I don't say that lightly. But the redactions clearly weren’t about protecting confidential supervisory information. They were about covering up evidence that they tried to kill BTC transactions, the development of blockchain tech, and even a bank account for stablecoin reserves. 2/6
First, when the Court saw what was behind the redactions before we did, it said it was “concerned with what appears to be FDICs lack of good-faith effort in making nuanced redactions,” and admonished that the FDIC “cannot simply blanket redact everything that is not an article or preposition.” 3/6
Privacy wins. Today the Fifth Circuit held that @USTreasury’s sanctions against Tornado Cash smart contracts are unlawful. This is a historic win for crypto and all who cares about defending liberty. @coinbase is proud to have helped lead this important challenge. 1/6
These smart contracts must now be removed from the sanctions list and US persons will once again be allowed to use this privacy-protecting protocol. Put another way, the government’s overreach will not stand. 2/6
No one wants criminals to use crypto protocols, but blocking open source technology entirely because a small portion of users are bad actors is not what Congress authorized. These sanctions stretched Treasury’s authority beyond recognition, and the Fifth Circuit agreed. 3/6
Chevron: gone. Secondary sales in the Binance case: gone (more to say about that...). And now, late on a Friday, more stonewalling from @SECGov to stop Coinbase from obtaining documents from Gary Gensler in our litigation. 🧵⬇️
As background, in March 2021, Mr. Gensler told Congress that the SEC lacked regulatory authority over digital asset exchanges, confirming market participants’ longstanding view that transactions in digital assets traded on such exchanges fell outside the securities laws.
As a prominent professor of blockchain technology, and later speaking in his individual capacity even while serving as Chair of the SEC, Mr. Gensler made a host of other statements on this very matter, both to the public at large and to audiences of market participants.
We just filed our reply in our request to file an interlocutory appeal with the 2nd Circuit. Unlike @SECGov, @coinbase’s position remains the same: To push for clarity for our industry and the 52 million Americans who own crypto, and against the SEC’s overreach beyond the authority it’s been given from Congress. 1/5
The core question we’re asking to appeal is whether the SEC may regulate as “investment contracts” digital asset transactions that don’t involve anything contractual. And we’re not the only ones who think this question deserves an interlocutory appeal. The SEC itself, in its request for the same relief in the Ripple case, acknowledged that this question has “industry-wide significance,” and noted that there are “substantial grounds for difference of opinion.” 2/5
From the beginning, we came to the SEC with good-faith efforts to have a conversation about a workable and balanced regulatory framework for crypto innovation within the US. Instead, we - like much of the industry - have been met with slammed doors, changing positions, and litigation. 3/5