BITCOIN - Brazil: proposed Bitcoin strategic reserve to counter economic instability On November 25, a bill was introduced in Brazil proposing the creation of the “Reserva Estratégica Soberana de Bitcoins” (RESBit), a national strategic reserve in bitcoin. The proposal, presented by Deputy Eros Biondini, outlines the allocation of up to 5% of Brazil’s international reserves, currently estimated at around $372 billion, into bitcoin. The potential investment could reach $18.6 billion. The goal is to increase the country’s economic resilience in the face of currency fluctuations and geopolitical uncertainties. The bill is part of an increasingly global context that is open to Bitcoin. Biondini cited examples such as Bitcoin’s adoption as legal tender in El Salvador and the approval of spot ETFs in the United States. Several analysts have emphasized the significance of this move, describing it as part of a “national race” to acquire bitcoin. The initiative further reinforces the view of Bitcoin as a strategic opportunity for managing national reserves.

Atlas21

Brazil: proposed Bitcoin strategic reserve to counter economic instability

A bill aims to diversify financial assets with up to 5% of the country's international reserves in bitcoin. On November

CRYPTO - US Court declares sanctions against Tornado Cash illegal On November 26, the U.S. Fifth Circuit Court issued a ruling against the authority of the U.S. Department of the Treasury, declaring the sanctions against the Tornado Cash mixer illegal. The decision marks a turning point in the legal definition of smart contracts. A panel of three judges determined that Tornado Cash’s smart contracts cannot be classified as property and are therefore not subject to sanctions under the International Emergency Economic Powers Act (IEEPA). The judges dismantled the Treasury’s accusations, asserting that the Office of Foreign Assets Control (OFAC) exceeded its regulatory powers. Since Tornado Cash’s smart contracts are autonomous and lack ownership, they fall outside OFAC’s jurisdiction. This ruling overturns a previous court decision. Bill Hughes, an attorney with Consensys, commented that smart contracts are merely “lines of code,” more akin to tools than services. This legal interpretation could have significant implications for the future of open-source technology. In August 2022, the Treasury had accused Tornado Cash of facilitating the laundering of over $7 billion in digital assets between 2019 and 2022. Despite this allegation, the Court found that sanctioning immutable code was beyond congressional authority. Paul Grewal, Chief Legal Officer at Coinbase, emphasized the importance of the decision, stating that blocking open-source technology due to the actions of a small fraction of its users does not fall within the powers of the U.S. Congress. The lawsuit was filed by six Tornado Cash users, supported by Coinbase, who challenged the inclusion of 44 smart contract addresses on the Specially Designated Nationals (SDN) list. The plaintiffs argued that the sanction was an overreach, as Tornado Cash is neither a person nor an entity but software. Although the ruling is a positive development, Hughes noted that Tornado Cash’s blocked status remains unchanged. The case will now return to the district court for review under the newly established criteria.

Atlas21

US Court declares sanctions against Tornado Cash illegal

The Court overturns the Treasury’s decision: smart contracts are not sanctionable property. On November 26, the U.S. Fifth Circuit Court