U.S. Treasury Delists Tornado Cash Addresses; Sanctions Developer
The U.S. Treasury has removed Tornado Cash addresses from its blacklist while continuing sanctions against its developer, Roman Semenov, as of March 2025.
This action signals a shift in crypto regulation, with the market responding positively, indicating optimism for privacy tools.
U.S. Treasury Shifts Stance on Tornado Cash
The U.S. Treasury‘s recent action involves the delisting of Tornado Cash addresses, marking a notable change in its regulatory stance. Despite this, sanctions remain against co-founder Roman Semenov due to alleged links to North Korea.
Roman Storm, another co-founder, faces a criminal trial in July 2025 for alleged money laundering. The decision comes after a court ruled 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. The 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.
