US Treasury Lifts Sanctions on Tornado Cash

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This announcement, made via a press release, marked a turning point. It highlighted the ongoing reshaping of the crypto industry under the current administration.

Tornado Cash, a popular crypto mixing tool, had previously been sanctioned, effectively banning its use for US citizens and businesses. However, after a review by the Treasury, this decision was reversed, signaling a fresh start for crypto policy.

US Lifts Tornado Cash Sanctions, Paving the Way for Crypto’s Future

This move follows the broader trend of the Biden administration making cryptocurrency a central focus. The new president has clearly set his sights on turning the United States into the crypto capital of the world. His approach has been notably different from the previous administration, with a stronger commitment to fairness and regulation.

Tornado Cash, once a tool that allowed users to mix cryptocurrencies for privacy, became the target of sanctions due to concerns about its potential use in money laundering and other illicit activities. The Treasury Department’s decision to lift these sanctions is seen as a step forward in the ongoing conversation about privacy, security, and regulation in the crypto space. The lifting of restrictions opens the door for Tornado Cash to be used once again by US individuals and businesses—provided they follow the necessary legal channels.

This ruling is part of a wider effort to recalibrate the relationship between crypto and the US government. The focus is not just on regulating the industry but on creating a framework where cryptocurrencies can thrive without falling through the cracks. With the upcoming changes, it seems that the US is ready to set the stage for a crypto-friendly future, giving innovators and developers a clear path forward.

More About Crypto Regulations
Led by Republican SEC Commissioner Hester Peirce, the crypto task force roundtable on March 21st aimed to “restart” the agency’s approach to crypto. It seeks a delicate balance between fostering innovation and ensuring investor protection. The roundtable featured prominent voices. This includes Miles Jennings from Andreessen Horowitz’s crypto division, a16z, and former SEC Commissioner Troy Paredes,. It underscores the depth of expertise brought to the table.
Jennings’ involvement reflects a16z crypto’s recent push for a control-based decentralization framework. It’s detailed in their February 2025 paper. It advocates for defining decentralization by the absence of control rather than the ongoing efforts of developers. It offers a potential path forward for regulatory clarity in the crypto space.

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