Tornado Cash’s native token, TORN, surged 130%, trading at $17.74 after a U.S. appeals court overturned sanctions imposed by the Treasury’s Office of Foreign Assets Control (OFAC). This decision has boosted investor confidence and signals a potential turning point for the decentralized finance (DeFi) sector. Many predict TORN’s price could climb even higher.
The appeals court ruled that OFAC exceeded its authority by sanctioning Tornado Cash in 2022. The Treasury Department had accused the crypto mixer of facilitating over $7 billion in money laundering, including activities linked to North Korean hackers. However, the court found that immutable smart contracts—self-operating and uncontrollable by any entity—cannot be classified as “property” under OFAC’s jurisdiction.
This ruling, brought forward by a lawsuit filed by Van Loon and others, sets a key legal benchmark for the crypto space. It limits OFAC’s power over decentralized technologies, drawing a clearer line between autonomous code and traditional financial assets.
For the DeFi industry, this is a crucial win. It highlights the importance of recognizing smart contracts as unique and distinct from conventional financial tools, a step toward fairer treatment of decentralized platforms.
DeFi Gets a Boost
The decision strengthens the argument that smart contracts should not be regulated like traditional financial systems. This clarity could lead to more legal challenges against restrictive rules on decentralized platforms.
Developers and investors may now find renewed confidence to innovate, paving the way for broader adoption of blockchain technology.
Market reaction has been swift and positive. After losing 95% of its market share earlier this year, TORN rebounded sharply. Its price jumped from $7.80 to a high of $20.91 within 24 hours, with trading volumes spiking 120%. This surge reflects growing optimism and renewed interest among traders.
The verdict shows us: blockchain’s autonomy is its strength, not its flaw!
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