Ethereum News: US Treasury Lifts Sanctions on Tornado Cash Amid Controversy

In a recent development that has sparked debate within the cryptocurrency community, the US Department of Treasury has lifted sanctions against Tornado Cash, a crypto mixing service previously accused of facilitating money laundering. Here’s a closer look at the situation and the reactions it has garnered.

US Treasury Lifts Sanctions Against Tornado Cash, Coinbase Legal Chief Criticizes Move

The US Department of Treasury has lifted economic sanctions against Tornado Cash, a cryptocurrency mixing company it previously accused of facilitating money laundering activities linked to the North Korean Lazarus Group. In an announcement, the Treasury cited a review of novel legal and policy issues raised by the use of financial sanctions against evolving technology and legal environments. However, Coinbase’s Chief Legal Officer, Paul Grewal, criticized the decision.

Fidelity Prepares to Tokenize Its US Treasury Fund on Ethereum

Fidelity Investments has filed with the SEC to list an on-chain class of its Treasury Digital Fund, using the Ethereum blockchain. The fund trades under the FYHXX ticker on the New York Stock Exchange and invests in short-term U.S. Treasuries and cash. Fidelity may in the future use other public layer-one networks, subject to eligibility and other requirements that the fund may impose.

Ethereum Supply Dries Up on Exchanges as Leverage Spikes—Bullish Signs for ETH?

The Ethereum (ETH) supply on exchanges has hit a yearly low of 18.32 million coins, a 7% drop from its year-to-date peak. This decline suggests traders are moving their holdings off exchanges for long-term storage, staking, or spot ETH ETFs. This, coupled with a gradual resurgence in the general market sentiment, indicates that ETH’s momentum could strengthen further.

World Liberty Financial Sparks Speculation of Stablecoin Launch

Crypto observers are speculating that World Liberty Financial (WLFI), the DeFi platform backed by U.S. President Donald Trump and his family, might be testing its long-awaited dollar stablecoin before rolling out for the broader public. Blockchain data shows that a token labeled as World Liberty Financial USD (USD1) was deployed earlier this month on the Ethereum and BNB Chain networks, with series of transactions occurring over the past couple weeks. Some transfers included addresses linked to Wintermute, a large digital asset trading firm and market maker, and crypto custodian BitGo.