CDS Crypto News Tornado Cash Court Ruling Sparks Surge in Privacy Coins Like Railgun and Zcash
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Tornado Cash Court Ruling Sparks Surge in Privacy Coins Like Railgun and Zcash

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Tornado Cash Court Ruling Sparks Surge In Privacy Coins Like Railgun And Zcash

Tornado Cash Ruling Boosts Privacy Coins: Railgun (RAIL) and Zcash (ZEC) Surge

Tornado Cash – Privacy-focused cryptocurrencies, including Railgun (RAIL) and Zcash (ZEC), saw significant gains following a landmark decision by the U.S. Fifth Circuit Court, which ruled that immutable smart contracts are not considered “property” under existing U.S. law. This ruling overturned the U.S. Treasury Department’s designation of Tornado Cash, a crypto mixing service, as a sanctioned entity, opening the door for privacy coins to surge in value.

The decision had a direct impact on the market, with TORN, the native token of Tornado Cash, skyrocketing by 382.9% to $17.17, after reaching highs of almost $35 earlier in the day. The court ruled that immutable smart contracts, which operate autonomously without human intervention, cannot be classified as property and, therefore, cannot be sanctioned under the International Emergency Economic Powers Act (IEEPA).

Privacy Coins Rally in Response to Ruling

As a result of the ruling, privacy coins experienced a market-wide rally. Railgun (RAIL) surged by 36.6%, reaching $0.98, while Zcash (ZEC) jumped 26.5%, reaching $56.92. Beam (BEAM) increased by 19.8%, hitting $0.069, and DASH climbed 11.4%, trading at $35.79. These significant price movements reflect the market’s optimism following the court’s decision and its potential impact on the future of decentralized finance (DeFi).

The court ruling emphasized that immutable smart contracts, by their very nature, cannot be owned or controlled, thus making them exempt from property-based sanctions. This ruling effectively challenges the Treasury’s August 2022 sanctions against Tornado Cash, which alleged the service facilitated over $7 billion in illicit transactions, including links to North Korea’s Lazarus Group.

Legal Clarity for Crypto: A Game-Changing Moment

Crypto leaders across the industry have hailed the decision as a pivotal moment for the space, emphasizing the legal clarity it provides for decentralized technologies. Peter Van Valkenburgh, the director of research at Coin Center, an advocacy group, praised the ruling on Twitter, stating, “Immutable smart contracts are not property of any kind and therefore can’t be sanctioned.”

The ruling also prompted reactions from other key figures in the industry. Coinbase’s Chief Legal Officer, Paul Grewal, tweeted, “Privacy wins,” calling the ruling a “historic win for crypto and all who care about defending liberty.” Similarly, Uniswap Labs CEO Hayden Adams tweeted, “Immutable smart contracts just beat the Treasury Department in court. Incredible to see the degree to which crypto is killing it in federal courts.”

The Growing Importance of Privacy Coins in the Crypto Ecosystem

This court ruling signals a significant shift in how decentralized technologies are viewed legally, and privacy coins are capitalizing on this new momentum. The surge in the value of privacy coins such as Railgun (RAIL) and Zcash (ZEC) highlights the growing importance of privacy and decentralization in the broader cryptocurrency ecosystem.

For now, privacy coins are basking in the spotlight, demonstrating the intricate relationship between crypto market performance and legal outcomes. This development underscores how regulatory decisions, like the Tornado Cash ruling, can influence the value of crypto assets and shape the future of blockchain technology.

Tornado Cash Court Ruling Sparks Surge In Privacy Coins Like Railgun And Zcash

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