Does the government have the right to target the technology just because criminals are using it? This issue has raised much controversy, especially in the crypto space. This problem is not just about the law; human lives are at stake as well. A recent ruling from a federal appeals court has given a historic win to the crypto community, asserting that the cryptocurrency mixing service Tornado Cash should have been exempt from sanctions.

"Tornado Cash's immutable smart contracts (lines of privacy-enabling code) are not the 'property' of a foreign national or entity," stated the appeals court. It concluded that it is not legal to block smart contracts under the International Emergency Economic Powers Act. This means that the U.S. Treasury's Office of Foreign Assets Control (OFAC) "overstepped its congressionally defined authority."

OFAC had imposed sanctions on Tornado Cash last year, accusing the platform of being used by North Korean hackers from the Lazarus Group and other cybercriminals who were allegedly laundering stolen cryptocurrencies, including from the Axie Infinity hack.

However, after several companies, including Coinbase, sued the government, arguing that the sanctions were unlawful, they achieved a positive outcome. Coinbase's Chief Legal Officer, Paul Grewal, celebrated the legal victory, calling it a "historic win for crypto."
Why is this win historic for crypto? Let us see what this outcome brings to us.
Smart contracts can no longer be automatically added to the sanctions list.
The market reacted within 2 hours after news appeared. The platform’s token, TORN, skyrocketed by over 500%.

So, this victory is a win not just for crypto, but for innovation and freedom as a whole. It's a reminder that technology itself isn’t inherently good or bad — it’s how it’s used that matters. Let’s hope this ruling sets a positive precedent for the future. We shouldn’t stifle the progress out of fear or misuse.