A federal court has dealt a major blow to the U.S. Treasury’s attempt to sanction cryptocurrency mixer Tornado Cash, striking down its actions based on legal limitations. The ruling specifically highlights that the authorities exceeded their authority in applying the International Emergency Economic Powers Act (IEEPA) to immutable smart contracts. This significant victory for Tornado Cash and proponents of privacy-focused crypto protocols has already shown positive market effects, with the TORN token price soaring by 8%. Coinbase, one of the plaintiffs supporting the case, praised the outcome. The court ruling emphasizes legal boundaries in targeting decentralized technologies without sufficient cause, while highlighting the crucial distinction between legitimate technology use and criminal activity.