The United States Treasury announced Friday that it has delisted Ethereum coin mixing service Tornado Cash from its list of parties sanctioned by the Office of Foreign Assets Control, reversing course after first sanctioning the service in 2022.

"Based on the Administration’s review of the novel legal and policy issues raised by use of financial sanctions against financial and commercial activity occurring within evolving technology and legal environments, we have exercised our discretion to remove the economic sanctions against Tornado Cash as reflected in Treasury’s Monday filing in Van Loon v. Department of the Treasury," the Treasury said Friday.

Editor's note: This story is breaking and will be updated with additional details.

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