Crypto Groups Urge Trump to Intervene in Tornado Cash Case

Roman Storm, co-founder of the controversial cryptocurrency mixing service Tornado Cash, finds himself at a critical legal juncture. Already convicted on one felony charge, Storm now faces the prospect of a retrial on two additional counts as federal prosecutors continue their pursuit of the developer. This legal uncertainty has sent shockwaves through the cryptocurrency community, raising fundamental questions about developer liability and the boundaries of regulatory enforcement in the rapidly evolving digital asset space.

The Tornado Cash case represents one of the most significant legal challenges facing the cryptocurrency industry, testing the limits of how existing financial regulations apply to decentralized protocols. The service, which allowed users to obscure their transaction histories, became a focal point for regulators concerned about money laundering and sanctions evasion. Storm’s conviction and potential retrial have become symbolic of the broader regulatory crackdown that has left many in the crypto industry feeling targeted and uncertain about their legal exposure.

In a dramatic escalation of the industry’s response to regulatory pressure, more than 65 cryptocurrency companies and advocacy groups have united to call for presidential intervention. The coalition, which includes prominent organizations like the Solana Policy Institute, Blockchain Association, and DeFi Education Fund, delivered a formal letter to President Trump dated Thursday, marking one of the most coordinated political actions by the crypto industry to date.

The breadth of this coalition underscores the widespread concern within the cryptocurrency sector about the precedent being set by the Tornado Cash prosecution. These organizations represent diverse interests across the blockchain ecosystem, from layer-1 protocols to decentralized finance platforms and policy advocacy groups. Their unified front demonstrates that the industry views Storm’s case as having implications far beyond a single developer or protocol, potentially affecting the entire foundation of crypto innovation in the United States.

The coalition’s letter outlines three specific policy requests aimed at creating a more predictable regulatory environment. First, the groups are asking President Trump to direct the IRS and US Treasury to clarify tax policy regarding digital assets, addressing long-standing uncertainties that have complicated compliance for both individuals and businesses operating in the crypto space.

Second, the organizations are seeking explicit protection for DeFi protocols from what they characterize as regulatory overreach. This demand comes amid increasing scrutiny from multiple regulatory agencies that have taken enforcement actions against various decentralized platforms. The coalition argues that without clear boundaries, innovation in the DeFi space will continue to be hampered by legal uncertainty.

Finally, the letter calls for the administration to encourage regulatory clarity through established financial regulators, specifically naming the Securities and Exchange Commission and Commodity Futures Trading Commission. This request reflects the industry’s frustration with what many perceive as conflicting or unclear guidance from different regulatory bodies, creating a challenging environment for compliance and innovation alike.

The timing of this intervention request coincides with a critical period for cryptocurrency regulation in the United States. As federal prosecutors consider whether to retry Roman Storm on the remaining charges, the industry is watching closely for signals about how the administration will approach similar cases in the future. The outcome could set important precedents for developer liability and the application of existing financial regulations to decentralized protocols.

The coalition’s direct appeal to President Trump represents a strategic shift in the industry’s approach to regulatory challenges. Rather than focusing solely on legal defenses or congressional lobbying, crypto advocates are now seeking executive intervention to address what they see as fundamental imbalances in the current regulatory approach. This move reflects growing concern that without high-level political intervention, the United States risks falling behind other jurisdictions in fostering cryptocurrency innovation while maintaining appropriate regulatory safeguards.