The Fifth Circuit Court's ruling on Tornado Cash The gains made by privacy tokens and decentralized Ethereum protocols have sparked widespread optimism.
On Tuesday, the court found that immutable smart contracts aren't property and can't be sanctioned under existing laws, signaling what some observers claim as a major win for privacy advocates.
"While the ruling does not endorse money laundering, it establishes a precedent allowing programmers to develop and release smart contract protocols without fear of sanction, provided they do not charge fees," 10X Research informed investors in a Wednesday note.
This move will also give developers more certainty about the types of applications they can create without being in the crosshairs of the regulators.
"Privacy won. Smart contracts won. Tornado Cash won. And OFAC lost," Balaji Srinivasan, Coinbase's former CTO and prominent crypto entrepreneur, The following are some of the ways to get in touch with each other Tuesday on X was formerly Twitter.
Crypto markets immediately took inspiration from the news: TORN, Tornado Cash's native token, Surge of over 380% Early Thursday
While privacy coins as a category have since tapered off to less than 2% in total gains over the past 24 hours, decentralized finance's market cap has jumped 8.2% and a further 21.5% on the week, data from CoinGecko shows.
Uniswap is one of the biggest gainers, up 11% for the day at a high above $12.50. This was the highest in eight months. Aave, Ethena and Ethena-AAVE have all also reached their stride, with 8.6%, 23% and their highest points in the last 2.5 years, and 5 months respectively.
"As Ethereum remains the leading blockchain for DeFi, this decision is viewed positively for the broader DeFi ecosystem and other protocols, particularly on the Ethereum network. This could have enormous implications," 10X Research wrote.
Alexey Pertsev was the Tornado Cash creator. Dutch court finds guilty In May for a case of money laundering, remains in prison.
"I am sad to announce that, despite our best efforts, the court decided to prolong my pre-trial detention,” Pertsev said on Twitter last week. “This decision significantly complicates my ability to prepare for the appeal, but I remain determined to continue fighting for justice."
Sebastian Sinclair edited the book