The U.S. Treasury Department says a final judgment in the Tornado Cash case is unnecessary after removing the protocol from its sanctions list. This statement raises questions about the future of the regulatory framework for cryptocurrency mixers.
A divisive decision
- Removal of sanctions: The Treasury removed Tornado Cash from the list of sanctioned entities, ending the restrictions.
- Pending litigation: Despite this decision, Coinbase and other industry players believe a judgment is still necessary to prevent future abuses of power.
A case far from over
- Risks of further sanction: The lack of a judgment means the Treasury could relist Tornado Cash at any time.
- Crypto industry reactions: Paul Grewal, Coinbase’s general counsel, says this decision does not follow due process and could weaken protections for crypto users.
Opportunities and challenges
Opportunities:
- Possible legal clarification for decentralized protocols.
- More flexible regulation for blockchain privacy tools.
Challenges:
- A risk of legal uncertainty for crypto mixer developers.
- A possible resumption of proceedings against the founders of Tornado Cash.
Conclusion
Although the U.S. Treasury has lifted sanctions against Tornado Cash, the lack of a final judgment leaves regulatory uncertainty. The crypto sector remains on alert for possible new government decisions.
