In January 2025, the U.S. District court for the Western District of Texas determined that Tornado Cash's immutable smart contracts could not be classified as "property" under the International Emergency Economic Powers Act (IEEPA)

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The U.S. District Court for the Western District of Texas ruled that Tornado Cash’s immutable smart contracts could not be classified as “property” under the International Emergency Economic Powers Act (IEEPA).
The reversal is seen as a victory for decentralized software proponents, as the court determined that Tornado Cash’s “smart contracts” cannot be deemed property under the International Emergency Economic Powers Act.

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