

The Law and Economics of Blacklisting
The crackdown on Tornado Cash, a crypto mixing service, continues a recent trend of regulators using blacklisting as a key enforcement tool. Tornado Cash was blacklisted by the Treasury Department for allegedly helping to launder over $7 billion in cryptocurrencies, some of which are believed to be the proceeds of cybercrimes, and Americans can no longer legally use Tornado Cash as a result. But U.S. authorities are far from being alone in usubg blacklisting as a regulatory tool. Blacklisting individuals, business entities, and even autonomous codes, as was the case with Tornado Cash, to achieve policy outcomes, has also … Read more