Hash Handcuffs: How Sanctions Collide with Censorship-Resistant Money

Hash Handcuffs: How Sanctions Collide with Censorship-Resistant Money

From Bitcoin Policy Institute by Bitcoin Policy Institute

October 6, 2025 · 54 min

About this episode

The episode discusses the intersection of U.S. sanctions and the Bitcoin network with insights from experts on the feasibility and implications of enforcing sanctions on a censorship-resistant currency.

In this conversation, Renee Sorchik sits down with Dr. Joshua Hendrickson and Dr. Craig Warmke to discuss their new paper, Sanctions and Sanction-Resistant Money. They explore the concept of “Hash Handcuffs” — the idea of enforcing U.S. sanctions on the Bitcoin network — and whether such attempts are technically feasible or economically effective. The discussion examines potential pressure points such as miners, nodes, and developers; the role of Marathon Digital’s OFAC-compliant mining experiment; and the theoretical concept of “feather forking.” The guests also consider the geopolitical implications of sanctions enforcement, the importance of maintaining a strong domestic mining industry, and how Bitcoin’s censorship resistance challenges traditional financial control mechanisms. Connect with the Bitcoin Policy Institute: https://x.com/btcpolicyorg Connect with Craig Warmke: https://x.com/craigwarmke Connect with Josh Hendrickson: https://x.com/RebelEconProf Connect with Renee Sorchik: https://x.com/Renee_C_S Chapters:00:00 – Intro & Guest Bios01:00 – Why the U.S. dollar dominates global sanctions03:00 – Bitcoin’s censorship resistance vs. OFAC compliance07:00 – Miners…

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