The U.S. Fifth Circuit Court's ruling that immutable smart contracts like those used by Tornado Cash cannot be classified as property has sparked optimism in the cryptocurrency community, particularly benefiting Ethereum and decentralized finance (DeFi) protocols. This decision is seen as a victory for privacy advocates and could provide developers with more freedom to innovate without fear of sanctions. Following the ruling, Tornado Cash's token, TORN, surged significantly, and other privacy-focused tokens and DeFi projects also saw gains.
The Fifth Circuit Court of Appeals ruled that the US Treasury's OFAC overstepped its authority by sanctioning Tornado Cash's immutable smart contracts, declaring them not "property" under federal law. This decision overturns OFAC's sanctions, marking a significant win for the crypto industry by emphasizing the autonomy and non-ownership of smart contracts. The ruling has been celebrated by crypto advocates as a victory for privacy and decentralization, with potential implications for future regulatory actions. Tornado Cash's token price surged over 400% following the news.
Tornado Cash's token, TORN, surged nearly 383% after a U.S. Fifth Circuit Court ruling stated that immutable smart contracts cannot be classified as property, challenging the U.S. Treasury's sanctions. This decision led to a rally in privacy-focused cryptocurrencies like Railgun, Zcash, and Beam. The court's ruling is seen as a significant win for privacy advocates and the crypto community, emphasizing the autonomy of decentralized technology.
