Crypto Comeback? Treasury U-Turn on Tornado Cash Shocks Markets
The U.S. Treasury just dropped sanctions on Tornado Cash after a deeper policy reviewmarking a notable shift in how Washington views crypto. The decision, filed under Van Loon v. Department of the Treasury, reflects a growing recognition that digital assets aren't going awayand blanket crackdowns may no longer be the answer. While the Treasury made it clear it's still laser-focused on cyber threats, especially those tied to North Korea, it's also acknowledging the other side of the coin: financial innovation and inclusion.
This pivot could quietly reshape the future for DeFi platforms and crypto infrastructure projects long caught in regulatory limbo. For investors, it sends a clear signal that U.S. regulators might be starting to embrace a more adaptive frameworkone that evolves alongside the tech rather than stifling it. It also raises new questions: who's next in line for regulatory redemption, and what does that mean for capital flow in crypto-related markets?
One stock to keep an eye on is Tesla (NASDAQ:TSLA). With its crypto exposure and vocal role in digital asset conversations, Tesla could see upside if the market interprets this move as the start of a friendlier regulatory climate. As policy shifts open the door to broader institutional engagement, names with blockchain ties may be early beneficiaries.
This article first appeared on GuruFocus.
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