TORN Tears Short Sellers Apart After Tornado Cash Win
Tornado Cash’s native token, TORN, surged to nearly $35 highs following the Fifth Circuit Court decision that under current law, immutable smart contracts cannot be categorized as “property.”.
The token ranked 665th on CoinGecko, traded at $20 with a market valuation of $76.5 million. the digital asset is up by over 450% for the day
The court’s historic ruling was a setback for the Treasury Department’s sanctions authority, which led to a surge in privacy-focused cryptocurrencies across the market.
“Immutable smart contracts just defeated the Treasury Department in court,” tweeted Hayden Adam, CEO of Uniswap Labs. The extent to which cryptocurrency is dominating federal courts is astounding. As a sign of how strongly the cryptocurrency market is tied to legal and regulatory outcomes, privacy coins are currently relishing their moment in the spotlight.
Tornado Cash’s immutable smart contracts, are autonomous lines of code that run without human intervention, were declared not a “property“ and, as a result, escaped the International Emergency Economic Powers Act (IEEPA), overturning a lower court’s decision.
The inability to own or control immutable smart contracts also made it clear that they are immune to property-based penalties. This directly contradicts the Treasury’s designation of Tornado Cash in August 2022, which claimed the protocol enabled more than $7 billion in illegal transactions, including money connected to the Lazarus Group in North Korea.
Peter Van Valkenburgh, director of research at advocacy group Coin Center, praised the decision’s legal clarity and hailed it as a turning point for the cryptocurrency industry. Van Valkenburgh stated on Twitter that “immutable smart contracts cannot be sanctioned because they are not property of any kind.”. The court’s recognition of decentralized technology was hailed by cryptocurrency leaders on social media, which increased the impact of the ruling.
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