Tornado Cash Delisting Raises Regulatory Questions About Crypto Privacy Tools

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) removed Tornado Cash from its sanctions list in March 2025, but the move came amidst ongoing legal charges against a developer and creates uncertainty regarding crypto privacy tools’ future regulatory status. While this delisting signals a shift in regulatory approach, it leaves lingering questions about compliance challenges for businesses using such tools, particularly those with ties to illicit activities.