Coin Center, a prominent nonprofit advocating for cryptocurrency policy, has developed a multifaceted legal strategy to counter what it perceives as overreach by U.S. government agencies, including the Department of Justice (DOJ), Treasury Department, and IRS. These strategies focus on defending the rights of software developers and users of open blockchain networks, emphasizing constitutional protections like free speech and privacy. Below is an overview of Coin Center’s legal approaches as of February 28, 2025, based on their public actions and priorities.
Section 6050I Lawsuit (Treasury/IRS): In June 2022, Coin Center filed a lawsuit against the U.S. Treasury Department challenging the amendment to Section 6050I of the Tax Code, part of the 2021 Infrastructure Investment and Jobs Act. This amendment mandates that individuals receiving over $10,000 in cryptocurrency report intrusive personal details (e.g., sender’s name, Social Security number) to the government.
Coin Center argues this constitutes “unconstitutional financial surveillance,” violating the Fourth Amendment (protection against unreasonable searches) and First Amendment (freedom of association and speech). Although a district court dismissed the case as “unripe” in 2023, a 2024 Sixth Circuit ruling partially reversed this, allowing Coin Center to proceed on its enumerated-powers claim—asserting Congress exceeded its authority. This demonstrates their strategy of pushing constitutional limits through federal courts, potentially aiming for Supreme Court review.
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Tornado Cash Sanctions (Treasury/OFAC): Coin Center has challenged the Treasury’s Office of Foreign Assets Control (OFAC) sanctions on Tornado Cash, a privacy-focused Ethereum mixer. In 2022, they sued Treasury, arguing that sanctioning open-source software (not a person or entity) exceeds OFAC’s authority and infringes on developers’ free speech rights. This case ties into broader efforts to protect code as constitutionally protected expression.
Non-Custodial Developer Protections: Coin Center has prioritized preventing “unjust prosecutions” of non-custodial software developers—those who don’t control user funds—targeted by the DOJ for unlicensed money transmission. Notable cases include the 2024 indictments of Tornado Cash developers (e.g., Roman Storm) and Samourai Wallet developers.
Coin Center contends that DOJ’s interpretation—that merely writing code facilitating transactions equates to money transmission—contradicts long-standing Financial Crimes Enforcement Network (FinCEN) guidance (2013 and 2019), which exempts non-custodial actors. Their strategy includes supporting affected developers, like Michael Lewellen’s lawsuit against DOJ, and advocating for legislative codification of FinCEN’s guidance via the Blockchain Regulatory Certainty Act.
Amicus Briefs and Support: Coin Center files amicus curiae briefs to influence court rulings, as seen in their backing of Tornado Cash-related cases, arguing that publishing code is protected speech under the First Amendment. This legal support aims to set precedents shielding developers from criminal liability for others’ use of their software.
While primarily litigation-focused, Coin Center complements its courtroom efforts with legislative proposals. Their 2025 policy priorities include pushing Congress to repeal or amend unconstitutional provisions (e.g., Section 6050I) and clarify developer liability. They’ve worked with lawmakers to introduce bills countering Treasury and DOJ actions, ensuring that if courts don’t fully resolve issues, statutory protections can safeguard their constituents. This dual-track approach—litigation and legislation—maximizes their impact.
Coin Center selects cases with potential to challenge foundational regulatory frameworks. For instance, their Section 6050I lawsuit could, if successful, undermine decades-old anti-money laundering laws beyond crypto, as noted by observers like The Verge in 2022. Similarly, their Tornado Cash litigation questions the scope of sanctions law, potentially affecting how software is regulated across industries. This strategy leverages crypto-specific disputes to address wider civil liberties concerns, appealing to allies like the Cato Institute and Fight for the Future.
Beyond direct legal action, Coin Center educates policymakers and the public to bolster their cases’ legitimacy. Their detailed reports (e.g., “Principles for Crypto Legislation,” January 2025) and events like the 2025 Annual Dinner frame their legal arguments in accessible terms, rallying support from the crypto community and civil rights advocates. This soft power amplifies their courtroom efforts by shaping judicial and legislative perceptions.
Tornado Cash litigation continues to test sanctions law, with Coin Center supporting parallel developer defenses. Their backing of Michael Lewellen’s suit against DOJ (highlighted in a January 2025 X post by Peter Van Valkenburgh) signals ongoing resistance to prosecutorial overreach. Coin Center’s strategies hinge on framing software development as a protected right, using constitutional arguments to curb agency actions, and pursuing systemic change through precedent or law.
Success could redefine tech regulation, but setbacks—like the initial 6050I dismissal—show the uphill battle against entrenched government power. Their persistence suggests a long-term commitment, potentially escalating to higher courts if lower rulings falter. What specific aspect of their strategy interests you most?