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A Fifth Circuit ruling overturned the sanctions against Tornado Cash cryptocurrency mixer smart contracts, imposed by the United States Treasury Department’s Office of Foreign Assets Control (OFAC) in August 2022. The court opined that the smart contracts that comprise the Tornado Cash cryptocurrency tumbler are "not property because they are not capable of being owned", and thus cannot be sanctioned by OFAC.16 The ruling was carefully limited to the specific Tornado Cash smart contracts, which underwent a trusted setup ceremony involving 1,100 participants to make around twenty of the service’s smart contracts permanently immutable.c Unlike many smart contracts, these Tornado Cash contracts truly cannot be modified or controlled in any way (short of, say, changing how Ethereum works), and the court decided that this means they cannot be sanctioned. This verdict has been celebrated by crypto enthusiasts who felt that OFAC’s sanctions were an overreach, but if it is a victory, I’m not sure it’s a decisive one. For one, I’m not really sure it’s a “crypto” vs. “anti-crypto” fight to begin with, though many in the crypto industry have certainly portrayed it as one. It seems to me that the Fifth Circuit is saying that OFAC can’t sanction a program — that is, the lines of code telling a computer how to perform an action — and that you have to sanction a service that runs that program, or perhaps more precisely: an individual or business that runs a service that runs the program.