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The US Treasury Department has lifted sanctions on notorious crypto mixer Tornado Cash, aligning with a broader shift in the current administration's approach to digital currency regulation.
The US Treasury Department has lifted sanctions on notorious crypto mixer Tornado Cash, aligning with a broader shift in the administration's approach to digital currency regulation. The decision reflects concerns about Tornado Cash's misuse but also recognizes its potential for improving transaction privacy. US authorities have indicted Tornado Cash co-founders on charges including conspiracy to commit money laundering and sanctions violations. The Securities and Exchange Commission is actively engaged in shaping the regulatory framework for digital currencies, with a focus on stablecoins. A bipartisan bill, the GENIUS Act, aims to clarify the law in relation to stablecoins, ensuring they obey anti-money laundering rules and are tied to real assets. International developments highlight the need for stricter regulations in the digital currency space, including a Russian crypto exchange seized by international cops.
The United States has been at the forefront of digital currency regulation, with various agencies and departments working to establish a framework that balances innovation with consumer protection. In recent weeks, significant developments have highlighted the administration's approach towards digital currencies, including the lifting of sanctions on notorious crypto mixer Tornado Cash.
The US Treasury Department's decision to lift sanctions on Tornado Cash aligns with a broader shift in the current administration's approach to digital currency regulation. The department stated that while they remain "deeply concerned" about the platform's misuse, it is now monitoring transactions closely and urging US persons to exercise caution before engaging in transactions that present risks.
Tornado Cash, launched in 2019 as an open-source Ethereum mixer, was intended to improve transaction privacy but was also exploited by malicious actors for illicit purposes. The platform's developers have faced significant scrutiny, with one of the software's developers – Alexey Pertsev – being arrested by Dutch authorities in 2022 and convicted on money laundering charges in 2024.
In August 2023, US authorities indicted Tornado Cash co-founders Roman Storm and Roman Semenov on charges including conspiracy to commit money laundering and sanctions violations. The indictment highlighted the need for stricter regulations in the digital currency space. However, the Treasury's decision to lift sanctions on Tornado Cash suggests that the administration is taking a more nuanced approach towards regulation.
The Securities and Exchange Commission's (SEC) Crypto Task Force has also been actively engaged in shaping the regulatory framework for digital currencies. In March 2025, the SEC held a public roundtable to discuss how existing securities laws apply to digital assets, with the aim of developing a new regulatory framework tailored to these technologies.
One of the key areas of focus is stablecoins – digital currency that is tied to a traditional asset, like the US dollar. A bipartisan group of senators has updated pending legislation dubbed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to clarify the law in relation to stablecoins.
The GENIUS Act would ensure that stablecoin suppliers obey anti-money laundering rules, ensure digital cash is tied to a real asset, and mandate regular audits and public disclosures to ensure transparency and consumer protection. However, Senator Elizabeth Warren (D-MA) expressed concerns that the bill ignores basic consumer protections that apply to every other financial product available in America.
The House of Representatives has yet to take up the bill, but strong bipartisan support for stablecoin regulation suggests it could receive a favorable reception once introduced. The development highlights the ongoing efforts by the US administration to establish a regulatory framework that balances innovation with consumer protection.
In recent weeks, various developments have underscored the need for stricter regulations in the digital currency space. Two alleged Garantex administrators were charged by the US Department of Justice after crypto-exchange web seizures. International cops seized ransomware crooks' favorite Russian crypto exchange. A pensioner was scammed out of a six-figure crypto nest egg.
The cryptocurrency market has also seen significant price movements, with Bitcoin and other digital currencies experiencing fluctuations due to various factors, including sanctions and regulatory developments. Bybit declared war on North Korea's Lazarus crime-ring to regain $1.5B stolen from wallet.
The evolving landscape of digital currency regulation in the US suggests that the administration is taking a more nuanced approach towards regulation, balancing innovation with consumer protection. The ongoing efforts by various agencies and departments highlight the need for stricter regulations in the digital currency space.
Related Information:
https://www.ethicalhackingnews.com/articles/The-Evolution-of-Digital-Currency-Regulation-A-Shift-in-Approach-by-the-US-Administration-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2025/03/24/tornado_cash_cryptocurrency/
https://www.politico.com/news/2025/03/13/congress-crypto-era-is-here-00229840
https://www.businessinsider.com/crypto-politics-trump-democrats-republicans-washington-bitcoin-reserve-summit-scaramucci-2025-3?op=1
Published: Mon Mar 24 07:02:43 2025 by llama3.2 3B Q4_K_M
