The Stanford Blockchain Club expressed deep concern about the U.S. government's pursuit of Tornado Cash developers Roman Storm and Roman Semenov under traditional federal money transmission laws.
The organization believes that using archaic laws like the 1960 clause to treat modern decentralized blockchain technology is like fitting a square peg into a round hole. Tornado Cash operates through immutable smart contracts, allowing users to hide transactions without intermediaries. Here, users have full control over their tokens from beginning to end, unlike traditional custodial services. It said: "The Department of Justice's aggressive application of 18 U.S.C. § 1960 in this case raises issues far beyond the immediate context of blockchain technology, bypassing the democratic process and undermining the constitutional framework that gives Congress legislative power and executive discretion." (Bitcoin.com)