Crypto News Roundup: Tornado Cash Delisted from US Sanctions, Bitcoin Sentiment Cools, and Australia Tackles Crypto Debanking

Here’s what’s making waves in the cryptocurrency world today, covering key updates on Tornado Cash, Bitcoin market trends, and major regulatory developments from Australia.

Tornado Cash Removed from US Sanctions List

In a significant shift, the U.S. Treasury Department has officially removed cryptocurrency mixer Tornado Cash from its sanctions list. The decision, announced on March 21, follows a ruling from a U.S. appeals court earlier this year, which stated that Tornado Cash’s smart contracts cannot be sanctioned because they are not owned by any foreign national or entity.

The court ruling clarified that Tornado Cash’s immutable smart contracts, which are lines of code enabling privacy, do not qualify as “property” under the sanctions laws. As a result, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) has removed several dozen Tornado-affiliated smart contract addresses from its sanctions list, specifically those on the Ethereum blockchain.

The news sent Tornado’s native token, Tornado Cash (TORN), soaring by around 60%. As of March 21, TORN's market capitalization was approximately $73 million, with a fully diluted value (FDV) close to $140 million, according to CoinMarketCap.

Speculative Appetite in Crypto Cools as Investors Seek Stability

Investor sentiment in the crypto market appears to be shifting, with a notable decline in speculative activity. As concerns over rising scams and broader macroeconomic uncertainty continue to weigh on market sentiment, investors are gravitating toward safer digital asset investments.

Bitcoin’s “hot supply” metric, which tracks the percentage of BTC aged one week or less, has dropped significantly—down over 50% from 5.9% in November to just 2.3% by March 20, according to Glassnode data.

This sharp decline signals that investors are taking a more cautious approach, positioning themselves away from volatile investments, including speculative assets like memecoins, which have seen a surge in scams recently. Ryan Lee, chief analyst at Bitget Research, noted that this shift reflects a broader market trend toward safer holdings in the face of growing instability.

Australia Moves Forward with Crypto Regulation Plans

In an effort to regulate the digital asset industry, the Australian government has unveiled a new framework aimed at governing crypto exchanges and related services. Announced by the Treasury Department on March 21, the new plan will bring crypto exchanges, custody services, and some brokerage firms under existing financial services laws. The proposal comes in response to increasing concerns over the lack of clear regulation in the country’s crypto market.

Under the new regulatory regime, crypto exchanges and businesses that store or trade digital assets will be required to follow similar compliance standards as traditional financial institutions. These include safeguarding customer assets, obtaining an Australian Financial Services License, and meeting minimum capital requirements.

Prime Minister Anthony Albanese’s center-left Labor Party is behind the proposal, which is designed to increase consumer protection and bring clarity to Australia’s crypto sector. The draft legislation will be released for public consultation, but the government’s plans could face changes depending on the outcome of the upcoming federal election, which must be held by May 17. Polls suggest the race is too close to call, with Albanese's Labor Party in a tight contest with the opposition Coalition, led by Peter Dutton.

Conclusion

The cryptocurrency landscape is evolving rapidly, marked by pivotal regulatory decisions, changing investor behavior, and new policy proposals. Tornado Cash's removal from the U.S. sanctions list is a win for privacy advocates, while the cooling of speculative interest signals growing caution among investors in the wake of market volatility and scams. Meanwhile, Australia is taking steps to tighten its grip on the crypto market, addressing both regulatory challenges and the growing issue of crypto debanking. These developments suggest a continuing push for clearer, more robust regulation of the digital asset sector on a global scale.