The US Treasury Department has lifted sanctions on the cryptocurrency mixer Tornado Cash following a court ruling in January. This development led to a sharp increase in the TORN token's value.
Conditions for Sanctions Removal
On March 21, the US Treasury Department announced the removal of Tornado Cash from its sanctions list. This decision followed a January ruling from a US appeals court, which affirmed that Tornado Cash's smart contracts are not the property of any foreign nationals, meaning OFAC overstepped its authority when sanctioning the company.
Market Reaction to Sanction Lifting
Following this news, Tornado Cash's native token (TORN) surged approximately 60%, according to data from CoinMarketCap. As of March 21, TORN's market capitalization is about $73 million, with a fully diluted value nearing $140 million.
What to Expect Next
The removal of sanctions on Tornado Cash may prompt a reevaluation of other cases involving smart contracts and sanctions lists. It is important to monitor the future actions of both the US Treasury and other regulatory bodies addressing cryptocurrencies.
The developments around Tornado Cash highlight the complex relationships between cryptocurrency projects and legal regulation. This also indicates the potential for reevaluating approaches to smart contract regulation.
