Is Tornado Cash Still at Risk? Coinbase Questions Treasury’s Decision
The recent removal of Tornado Cash (TORN) from the U.S. sanctions list has stirred fresh debate — but not everyone sees it as a win. In fact, Coinbase’s Chief Legal Officer, Paul Grewal, has voiced serious concerns, warning that regulatory uncertainty still looms large over the coin’s future.
Coinbase Criticizes Treasury’s Move: No Final Legal Clarity
Although the U.S. Treasury has delisted Tornado Cash, Grewal believes the government may be attempting to sidestep a final court ruling that could prevent them from reimposing sanctions later. He argues that without a definitive legal judgment, the door remains open for the Treasury to blacklist Tornado Cash again at any time.
In a recent statement, Grewal pointed out that the Treasury’s request to dismiss the court case doesn’t offer lasting assurance. Citing previous examples where sanctions were removed only to be reinstated later, he warned that history could repeat itself with TORN.
“This isn’t legal clarity — it’s a temporary pause,” Grewal emphasized, stressing that crypto projects need long-term legal stability, not fleeting regulatory relief.
TORN Price Reaction: Volatile Swings Follow Coinbase Comments
Shortly after Grewal’s comments made headlines, Tornado Cash’s price dipped sharply, dropping from $12.83 to $11.91 in under an hour. However, the market didn’t take long to bounce back — TORN quickly surged to $15.20, matching its previous hype-driven high of $15.26.
Currently, TORN is trading at $13.93, marking a 12.75% increase in the last 24 hours, with a market cap of $573.23 million. Despite the price rally, trading volume remains low, contributing just 4.99% of the total market activity in the same time frame.
This price fluctuation highlights how regulatory headlines continue to drive crypto market sentiment, especially for tokens like TORN that sit at the intersection of privacy and compliance.
Market Sentiment: Tornado Cash Shows Growth Amid Uncertainty
Despite regulatory shadows, Tornado Cash is demonstrating strong price resilience, suggesting ongoing investor interest. However, it’s also clear that the token remains highly sensitive to legal and political developments.
The recent spike followed by a dip and recovery proves one thing: TORN’s future remains a rollercoaster ride. A single unfavorable move from the U.S. Treasury could quickly derail this progress, while a positive regulatory stance could help solidify TORN’s place in the crypto market.
What Lies Ahead for Tornado Cash?
The outlook for Tornado Cash remains uncertain. While the sanctions have been lifted for now, there’s no legal safeguard preventing future action. Until a final court ruling is made, TORN remains in a grey area — both from a regulatory and investment perspective.
Investor Tip:
Keep a close eye on legal updates and policy shifts before making any long-term investment in Tornado Cash. The token holds potential, but the risk of renewed sanctions could quickly reverse gains.
Final Thoughts
TORN may be enjoying2 a short-term bounce, but true stability requires legal clarity. As Coinbase continues to push for stronger protections and transparency, the broader crypto community will be watching closely. Whether Tornado Cash becomes a lasting asset or a short-lived bubble will depend on the next regulatory moves.