Unchained The Chopping Block: Did OFAC Overstep by Sanctioning Tornado Cash? - Ep. 386
Aug 18, 2022
Discover the controversies surrounding Tornado Cash and the implications of OFAC sanctions on privacy in crypto. The discussion highlights the challenges faced by decentralized finance as government regulations rise. Delve into the intricate issues of Ethereum's shift to Proof of Stake and the centralization risks posed by MEV. Learn about the evolving landscape of NFT royalties and how innovative platforms like Sudoswap are changing the game for creators. Each topic unveils the complexities of navigating the intersections of regulation, technology, and market dynamics.
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Tornado Cash Sanctioned
- OFAC sanctioned Tornado Cash, a privacy protocol on Ethereum, marking the first time a smart contract has been targeted.
- This differs from the Blender.io sanction, which targeted a legal entity and individuals.
Privacy Under Threat
- Privacy solutions like Tornado Cash are crucial because hacked funds are often laundered through them.
- Regulators targeting privacy may stifle innovation, even though illicit actors will find alternatives.
Differing Views on Regulation
- Laura Shin points out that the crypto community and regulators often have different views, even with shared technological understanding.
- Gary Gensler's stance on Ether, initially seeming to imply it wasn't a security, then suggesting otherwise, illustrates this.
