A U.S. federal appeals court has made a landmark ruling, reversing the Treasury Department's sanctions on Tornado Cash's smart contracts. The court decided that these smart contracts aren't "property" subject to sanctions under the International Emergency Economic Powers Act.¹

This decision is a significant win for the crypto industry, as it sets a precedent for the government's ability to regulate cryptocurrency transactions. The ruling also highlights the need for updated laws to address modern technologies like cryptocurrency mixers.

The case began when the Treasury Department sanctioned Tornado Cash in 2022 for allegedly facilitating the laundering of over $7 billion in virtual currency. However, the appeals court found that the department overstepped its authority by targeting the smart contracts themselves, rather than the individuals using them for illicit activities.

The impact of this ruling is already being felt, with Tornado Cash's token, TORN, surging over 900% to hit a two-year high of $40. While this decision is a victory for crypto advocates, it's essential to note that it doesn't necessarily shield all aspects of Tornado Cash from Treasury oversight.#defi #btc #trading