The Tornado Cash Trial: Legal Outlook and Precedent w/ Amanda Tuminelli | Bitcoin Politics Ep. 3

Jul 31, 2025

Amanda Tuminelli, Executive Director and CLO of the DeFi Education Fund, dives into the legal complexities of the Tornado Cash trial. She discusses the significant implications this case has for Bitcoin developers and privacy tech. Tuminelli highlights the need for clearer legislative protections under the Blockchain Regulatory Certainty Act. The conversation reveals how the DOJ’s recent shifts in policy could stifle innovation, as well as the importance of emphasizing positive use cases for privacy-preserving technologies in legal discussions.

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INSIGHT

Misinterpretation of Money Transmission Law

Section 1960 criminalizes unlicensed money transmitting on behalf of the public, requiring custody and control over funds.
The DOJ's new interpretation wrongly claims software developers without fund control can be prosecuted under this law, contradicting longstanding FinCEN guidance.

ADVICE

Push for Developer Legal Protections

Advocate for legislative clarity that developers of neutral, non-custodial software are not money transmitters.
Support bills like the Blockchain Regulatory Certainty Act to protect developers from onerous licensing.

INSIGHT

DOJ's Shifting Crypto Enforcement

The DOJ is shifting from pursuing registration violations to focusing on serious crimes like fraud and cartel-related schemes.
The Blanche memo excludes an official DOJ stance on criminal knowledge or intent under certain charges, leaving ambiguity.

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In episode 3 of Bitcoin Politics, special guest Amanda Tuminelli — Executive Director and CLO of the DeFi Education Fund — breaks down the legal battle over Tornado Cash, and the high-stakes implications for Bitcoin developers and privacy-preserving technology.

From courtroom strategy to the fight for clear developer protections in the CLARITY Act and Blockchain Regulatory Certainty Act (BRCA), this conversation explores the implications that various trial outcomes may have on the crypto ecosystem and open source development.

Tuminelli offers expert legal analysis of the Tornado Cash, why the DOJ’s shift away from FinCEN guidance threatens innovation, and how Congress might be gutting key protections in upcoming crypto legislation.

Recorded 8/25/2025 in conversation with Frank Corva, Bitcoin Magazine Political Correspondent

🔶 Connect with Amanda Tuminelli on X: https://x.com/amandatums

🔶 Connect with Frank Corva on X: https://x.com/frankcorva

🔶 Learn more about the DeFi Education Fund: https://www.defieducationfund.org/

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Chapters:

00:00 - Intro - Amanda Tuminelli

03:12 - Explanation of Money Transmission Laws and 18 USC 1960

07:15 - Legislative Efforts to Protect Developers: The Blockchain Regulatory Certainty Act (BRCA)

10:16 - The DOJ's Blanche Memo and Its Impact on Crypto Prosecutions

13:32 - Clarifying Legal Terms: Mens Rea and Its Importance in the Case

16:43 - Current Status and Legal Arguments in the Tornado Cash Trial

24:05 - Potential Jury Impact and Defense Strategies Regarding Witness Testimony

28:15 - Positive Use Cases of Privacy Technology and Jury Considerations

31:26 - Amicus Briefs Filed in Support of the Defense

33:49 - Implications of the Case Outcome and Call to Action

36:30 - Closing Remarks and Resources

NOTE: Video graphic incorrectly lists Amanda's name as "Rep. Warren Davidson"

#TornadoCash #DeFi #PrivacyTech #CLARITYAct #BRCA #OpenSource #BitcoinDevelopers #FinancialPrivacy #CryptoPolicy #BitcoinMagazine #AmandaTuminelli #DeFiEducationFund