Crypto Lawyer Eric Tung Nominated for US Circuit Judge

Eric Tung, a corporate lawyer with a notable history of representing cryptocurrency firms, is set to join one of the most influential federal courts in the United States. On Tuesday, US President Donald Trump sent Tung’s nomination to the Senate to be a US Circuit Judge for the Ninth Circuit, which covers Arizona, Idaho, Montana, Oregon, Washington, Nevada, California, Alaska, and Hawaii. Tung, a partner at the law firm Jones Day since 2019, has had clients that include digital currency companies.

Court records show that Tung represented the advocacy group Blockchain Association while at Jones Day in a case filed by six Tornado Cash users against the US Treasury Department. He also represented an investor filing a lawsuit against HDR Global Trading Limited, the parent company of the BitMEX exchange. Should he be confirmed as a federal judge, he would likely cover appeals in cases involving Silicon Valley-based businesses that file in the jurisdiction, which would include many cryptocurrency companies.

Tung's appointment has drawn criticism, with watchdog organization Accountable.US saying the potential judge could support deregulating digital assets as part of Trump’s administration crypto agenda. The president has already radically changed leadership at financial agencies overseeing digital assets such as the US Securities and Exchange Commission, and has his pick under consideration in the Senate to lead the Commodity Futures Trading Commission.

“Tung has built his career representing crypto firms seeking to avoid government regulation,” said the watchdog. “He served as counsel for a stablecoin provider in a brief arguing standalone sales of stablecoins are not securities. He represented the Blockchain Association in a brief opposing regulation of immutable smart contracts. While representing an investment firm backing crypto companies, he argued for looser liability on a crypto tool.”

Any federal judge overseeing appeals can have considerable influence over how civil and criminal cases are handled in the future. Many technology companies, including those involved with crypto and blockchain, file in the Ninth Circuit when appropriate. In 2024, a panel of three judges in the circuit partially reversed a class-action lawsuit alleging that Binance.US had manipulated the price of Hex (HEX). Nvidia, the semiconductor company, went through the Ninth Circuit in a 2018 case brought by some of its shareholders over undisclosed sales to crypto miners.

As of Tuesday, Tung’s nomination had been received by the Senate and referred to the Committee on the Judiciary. It’s unclear when the chamber will consider a vote on the potential federal judge, as both the House of Representatives and the Senate have been focused on passing three bills related to digital assets.

Tung's legal career has been marked by his representation of various crypto firms, a sector that has seen rapid growth and increasing regulatory scrutiny. His appointment to the federal bench raises questions about how his past work might influence his rulings on cases involving cryptocurrency and related technologies. Critics argue that his background could lead to decisions that favor the industry, potentially undermining the impartiality expected of a federal judge.

The Senate Judiciary Committee is currently weighing Tung's nomination, with Democrats expressing concerns about his potential conflicts of interest. They are calling for a thorough review of his past cases and affiliations to ensure that his appointment would not compromise the integrity of the court. The committee is also considering the broader implications of having a judge with such a specialized background in a field that is still largely unregulated.

Tung's supporters, however, argue that his expertise in the crypto industry could be an asset to the court, providing valuable insights into complex legal issues related to digital currencies and blockchain technology. They contend that his appointment could help the court better understand and navigate the evolving landscape of financial technology, ultimately leading to more informed and balanced rulings.

The debate over Tung's nomination highlights the growing influence of the crypto industry in the legal and regulatory spheres. As digital currencies and blockchain technology continue to gain traction, the need for judges with specialized knowledge in these areas is becoming increasingly apparent. However, the potential for conflicts of interest and bias remains a significant concern, particularly in a field that is still largely unregulated and subject to rapid change.

The outcome of Tung's nomination will have far-reaching implications for the future of cryptocurrency regulation and the role of the judiciary in shaping the industry's development. As the Senate Judiciary Committee continues to review his appointment, the debate over his qualifications and potential conflicts of interest is likely to intensify, with both supporters and critics voicing their opinions on the matter.