DC Crypto Policy Developments: Tornado Cash and SEC Bulletin Updates

The recent developments in the scene of the encryption policy have sparked great attention, especially about the ongoing legal procedures that involve the cash of the hurricane and the changes in the SEC accounting instructions, according to Crypto Custodians A16z Crypto.

Tornado Cash: Update legal procedures

In a major update from the US District Court of the Western Region in Texas, procedural measures were observed in the ongoing case against Tornado Cash. Initially, it was approved by the US Treasury in 2022 for alleged money laundering activities, including electronic breakthrough revenues in North Korea, the case witnessed various developments. In November 2024, the Court of Appeal in the Fifth Chamber ruled that the Treasury Ministry had exceeded its authority, and returned the case to the provincial court to determine the means of recession.

The Texas Provincial Court is now preparing to reopen legal procedures. Despite the reports of the media that indicates the impact of the sanctions, the sanctions remain in effect until an order is issued by the court. The results of this case can have long -term effects, especially given the similar continuous litigation and access to the Supreme Court.

SEC cancels the accounting bulletin, employees 121

In another major change in politics, SEC canceled the employee accounting bulletin No. 121, which was required by entities that protect customer encryption assets to report obligations. This directive, an effective since April 2022, has faced great opposition from policy makers who have argued that it was a transgression.

With the issuance of employee accounting leaflet No. 122, they are now able to apply standard accounting principles, which reflects the true nature of nursery arrangements instead of assuming obligations. This change is expected to make banks more financially for banks to engage in encryption custody without the burden of additional obligations.

SAB Cancel No. 121 follows an effort in Congress from the two parties to cancel the bulletin, which President Biden was exposed to in May 2024. The new guidance coincides with industrial calls to more appropriate regulations that do not hinder innovation.

Executive demand for digital financial technology

President Trump recently released an executive matter aimed at strengthening US leadership in digital financial technology. It emphasizes the importance of digital assets and Blockchain technology in leading innovation and economic growth. It is also suggested to establish a national digital asset stock, which is likely to be obtained from encrypted currencies that have been seized through law enforcement efforts.

The executive matter emphasizes the administration’s commitment to support responsible development and the use of digital technologies, which paves the way for more organizational amendments.

Politics updates define these decisive steps in the advanced organizational environment, with great effects on the industry as a whole. The stakeholders are advised to stay aware that these developments are revealed.

Photo source: Shutterstock