Tornado Cash and collateral damage
This is just like the SEC &quot;not enforcing&quot; securities clauses until they have evidence. I think the writing is on the wall for not just Tornado Cash, but any system that functions like it: if you don&#x27;t have an AML system that works, and your system is used for anything the government can prove would&#x27;ve been stopped by AML and should have been stopped by AML, it is incompatible, in principle, with the US dollar.<p>Just because Tornado Cash and other mixers survived for this long doesn&#x27;t mean that the law suddenly changed or anything. All it means is that there was enough evidence collected to justify OFAC&#x2F;SDN sanctioning. Then, the dominoes fell.<p>Tornado Cash was &#x2F;never&#x2F; okay, but the government waited patiently for the evidence and acted when it had it. The same thing should be assumed to be true for &#x2F;all&#x2F; systems in this sphere. The US dollar is the world reserve currency, and the SDN list is a death sentence for any project or system if that system has outputs to US dollars anywhere in the chain. All electronic cash transfer systems should be assumed to be incompatible unless there&#x27;s a clear AML chain established that can reasonably defend against a blanket sanction.<p>In the exact same way, the SEC will go after any cryptocurrency &quot;securities&quot; that they want to, as soon as those securities blow up. Filecoin had an ICO just like a lot of other securities, but seemingly because it hasn&#x27;t blown up, the SEC hasn&#x27;t come knocking yet. It&#x27;s just an evidence collection game.