US Treasury Department drops cryptocurrency mixer Tornado Cash from its sanctions list

The US Treasury Department has dropped cryptocurrency mixer Tornado Cash from its sanctions list, the agency said on March 20.

The US Treasury Department's Office of Foreign Assets Control (OFAC) has dropped cryptocurrency mixer Tornado Cash from its sanctions list. The move follows a January ruling by a US appeals court, which overturned part of a lower court ruling that had blocked OFAC from imposing sanctions on Tornado’s smart contracts.

The appeals court said that OFAC cannot sanction Tornado’s smart contracts because they are not the property of any foreign national or entity. According to the January ruling, Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are the "property" of a foreign national or entity, meaning that OFC overstepped its congressionally defined authority.

In a statement on Wednesday, Treasury said that OFAC removed several dozen smart contract addresses on the Ethereum blockchain network from its sanctions list. The agency added that it is continuing to work with the public and private sectors to provide clear guidance on the use of crypto and blockchain technology.

"The administration is committed to using the full range of the Treasury's authorities to counter the national security threat posed by the Iranian regime and to protect the American people," the statement added.

output: The US Treasury Department's Office of Foreign Assets Control (OFAC) has dropped cryptocurrency mixer Tornado Cash from its sanctions list, the agency said on Wednesday.

The removal follows a January ruling by a US appeals court, which overturned part of a lower court ruling that had blocked OFAC from imposing sanctions on Tornado's smart contracts.

The appeals court said that OFAC cannot sanction Tornado's smart contracts because they are not the property of any foreign national or entity. According to the January ruling, Tornado Cash's immutable smart contracts (the lines of privacy-enabling software code) are the "property" of a foreign national or entity, meaning that O.F.A.C. overstepped its congressionally defined authority.

"In a statement, Treasury said that OFAC removed several dozen smart contract addresses on the Ethereum blockchain network from its sanctions list. The agency added that it is continuing to work with the public and private sectors to provide clear and complete guidance on the use of crypto and blockchain technology.

"The administration is committed to using the full range of the Treasury's authorities to counter the national security threat posed by the Iranian regime and to protect the American people," the statement added.

TORN is up around 60% on the news. Source: CoinMarketCap

The news comes after the US House of Representatives passed a bill that would create a new regulatory framework for cryptocurrencies. The bill, which is still pending in the Senate, would give the Securities and Exchange Commission (SEC) the authority to regulate crypto exchanges and other institutions.

The House Financial Services Committee also released a bipartisan discussion draft of legislation on stablecoins, which would create a new regulatory regime for stablecoins and require the Federal Reserve to create a digital dollar.

The measures are part of a broader effort by Congress to regulate the cryptocurrency industry, which has seen rapid growth in recent years.

The вместилище of the lower court ruling that had blocked OFAC from imposing sanctions on Tornado's smart contracts is still pending. In December, a lower court ruled that OFAC's sanctions on Tornado were unlawful because the agency failed to follow proper procedures in imposing the sanctions.

The lower court also ruled that OFAC's sanctions on Tornado's smart contracts were impermissible because the smart contracts are not "property" within the meaning of the sanctions law.

However, the appeals court reversed the lower court's ruling on the smart contracts sanctions, finding that OFAC's actions were permissible.

The appeals court's ruling is a significant victory for OFAC, which has been increasingly using its sanctions authorities to target cryptocurrency entities.

The ruling could also have implications for other types of sanctions, such as those imposed on state-owned enterprises in China and Russia.

In recent months, US lawmakers have been divided over how to regulate cryptocurrencies. Some lawmakers, such as Senator Pat Toomey (R-PA), have argued that the US should adopt a light-touch regulatory approach, similar to that used in Europe.

However, other lawmakers, such as Senator Sherrod Brown (D-OH), have argued that the US should take a more aggressive approach to regulating cryptocurrencies, in order to protect consumers and the financial system.

The House Financial Services Committee is currently working on bipartisan legislation that would create a new regulatory framework for cryptocurrencies. The bill, which is still pending in the Senate, would give the SEC the authority to regulate crypto exchanges and other institutions.

The committee has also released a bipartisan discussion draft of legislation on stablecoins, which would create a new regulatory regime for stablecoins and require the Federal Reserve to create a digital dollar.

The measures are part of a broader effort by Congress to regulate the cryptocurrency industry, which has seen rapid growth in recent years.

Despite the bipartisan cooperation, there are still significant differences of opinion