The U.S. Treasury has changed its stance on Tornado Cash by delisting its addresses while maintaining sanctions on its developer.
U.S. Treasury Shifts Stance on Tornado Cash
The U.S. Treasury's recent action involves delisting Tornado Cash addresses, indicating a significant shift in regulatory stance. Nonetheless, sanctions against co-founder Roman Semenov remain due to alleged ties to North Korea. Roman Storm, another co-founder, faces a criminal trial in July 2025 for alleged money laundering. This decision follows a court ruling that Tornado Cash’s smart contracts do not fall under IEEPA as 'property.'
TORN Token Surges 40% Post-Announcement
The market reacted immediately with the TORN token experiencing a 40% increase following the Treasury's announcement. This reflects growing market confidence in privacy-focused protocols. Paul Grewal, Coinbase's Chief Legal Officer, hailed the ruling as a 'historic win for crypto and all who care about defending liberty.' He further urged the U.S. government to avoid further challenges to the decision. Public sentiment showed support, as seen on platforms like Twitter, highlighting interest in decentralized finance.
Tornado Cash Case May Influence Global Regulation
Similar sanctions on crypto mixers like Blender.io led to decreased activity due to regulatory pressure. In contrast, current actions on Tornado Cash prompt market optimism and utility recovery. Experts suggest the ruling could set a precedent for other protocols, affecting regulatory approaches globally. Antoni Zolciak highlights its potential to enhance on-chain privacy and decentralization.
The changes regarding Tornado Cash could significantly impact global regulatory approaches to privacy and decentralization in the crypto industry.
