The court rejected this argument finding that Tornado Cash’s DAO (decentralized autonomous organization) which is responsible for maintaining and upgrading Tornado Cash and receives revenue from its operation, is an “association” which counts as a “person” under the statute.

companies, services, trusts are classed as entities (legal persons/ nationals)
so they did not ban 'code'. the banned a service, specifically a MSB Money Service Business


yes this has other implications where by when code starts operating as a organisation, association, as a service.. then jurisdictions start applying
for instance blockstreams liquid is an example(its federation), another would be LN users that offer "routing" would be payment facilitators/ money services