Court Ruling Overturns US Sanctions on Tornado Cash, Boosts Ethereum and DeFi
Tornado Cash, a cryptocurrency mixing service that was sanctioned by the U.S. Treasury Department in August 2022, has recently seen a reversal in its legal fate.
The U.S. Court of Appeals ruled in favor of Tornado Cash, overturning a previous decision. The court determined that the U.S. Treasury’s Office of Foreign Assets Control (OFAC) had overstepped its jurisdiction in sanctioning the platform.
Additionally, the ruling clarified that immutable smart contracts, such as those used by Tornado Cash, are not considered property and therefore fall outside the scope of sanctions under current law.
This ruling has sparked a notable surge in the value of Tornado Cash’s native token, TORN, and industry experts are weighing in on the wider implications. Markus Thielen, founder of 10X Research, highlighted that the decision represents a significant milestone for the Ethereum and decentralized finance (DeFi) sectors.
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Thielen believes this ruling sets an important precedent, allowing developers to create and deploy smart contract protocols without the threat of government sanctions, provided they do not charge fees.
Thielen also emphasized that the decision would likely benefit Ethereum, which remains the leading blockchain for DeFi applications. As a result, he anticipates positive outcomes for Ethereum-based altcoins, noting the potential ripple effect this ruling could have across the entire DeFi ecosystem.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
