- Jesse Powell described the federal restrictions on Tornado Cash as “unconstitutional.”
- The creator of Uniswap reiterated his opinion that there is a gap in the market.
Tornado Cash, a private crypto shuffling tool, got a notice last week when it was penalized by US Treasury Department. The sector as a whole is beginning to realize the severity of the sanctions, and this has led many to question what exactly compliance entails.
There may be unforeseen effects of the current sanctions imposed on Tornado Cash. They seem to be trying to do the right thing and put an end to the evil, but they may actually end up causing more problems than they solve.
Kraken CEO Jesse Powell called the federal restrictions on Tornado Cash “unconstitutional.” On Tuesday, he told Bloomberg that “people have a right to financial privacy” and that he believes sanctions will not withstand legal scrutiny.
The need for legitimate privacy solutions
The US Treasury announced the measure on August 8, saying it was necessary because criminals have laundered more than $7 billion in virtual money since its creation in 2019 using the privacy mashup tool. While about $7 billion has been channeled through the anonymization tool, blockchain investigators Elliptical He estimated that only $1.5 billion of that cash was truly illegal.
According to Powell, the ban was a “mostly imperceptible” reaction to the collapse of the Terra ecosystem in May, and the removal of Tornado’s source code from Github, where it was initially located, “was not necessary”.
By criticizing the sanctions, Powell added his voice to the chorus of crypto-supporters who have spoken out against it. When asked about the need for legitimate privacy solutions, Uniswap creator Hayden Adams confirmed his opinion that there is a gap in the market.
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