Tornado Cash’s native token, TORN, experienced a significant price surge following a pivotal U.S. court decision clarifying the legal standing of immutable smart contracts.
On Tuesday, the token briefly reached a high of nearly $35 before retreating to $17.77—a substantial 391.9% increase within a day, according to CoinGecko.
TORN Daily Chart. Source: CoinGecko
Related: Tornado Cash Sees $1.9B in 2024 Deposits
The U.S. Fifth Circuit Court ruled that immutable smart contracts, which operate autonomously and without human intervention, cannot be classified as “property” under current laws, a decision that challenges the U.S. Treasury Department’s authority to impose sanctions on such technologies, as seen in its 2022 designation of Tornado Cash.
The ruling sparked a rally across privacy-focused cryptocurrencies. Railgun (RAIL) rose 36.6% to $0.98, Zcash (ZEC) increased by 26.5% to $56.92, Beam (BEAM) gained 19.8% to $0.069, and DASH saw an 11.4% uptick to $35.79, as reported by CoinGecko.
“Historic Win For Crypto”: Community and Industry Response on Tornado Cash
Crypto leaders and legal experts celebrated the court’s recognition of decentralized technologies. Coinbase’s Chief Legal Officer Paul Grewal described the ruling as a “historic win for crypto and all who care about defending liberty.”
Similarly, Uniswap Labs CEO Hayden Adams noted the significance of the decision, stating, “Immutable smart contracts just beat the Treasury Department in court
holy shit
immutable smart contracts just beat the treasury department in court
“we hold that Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are not the “property” of a foreign national or entity, meaning (1) they cannot be blocked under… https://t.co/KROajcEGhq pic.twitter.com/qYpMa6vpe3
— Hayden Adams (@haydenzadams) November 27, 2024
Not Too Soon
Although the recent U.S. court ruling in favor of Tornado Cash’s immutable smart contracts is seen as a win for privacy advocates, the challenges for the platform and broader cryptocurrency industry are far from over:
The U.S. Treasury Department has yet to announce whether it will appeal the decision, leaving the case unresolved.
Other elements of Tornado Cash’s operations remain subject to potential legal scrutiny, particularly as regulators focus on anti-money laundering and other crime prevention measures.
The ruling underscores a broader struggle between maintaining privacy rights for users and enabling effective enforcement against illicit activities within the cryptocurrency sector.
This court decision is a significant milestone in the ongoing development of cryptocurrency regulations in the United States.
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By clarifying the legal status of immutable smart contracts, it could shape future legislative and regulatory approaches to blockchain technologies. The case highlights the complexities regulators face in balancing innovation and privacy with the need for security and transparency in financial systems.