\n
![](\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvYjdlMDM2ZmQtZDM5Mi00MDZjLWJkODUtNTY4MzE0OWJjZWQ2LkpQRw==.jpg\")
<\/p>\n
\n<\/p>\n
Clamping down on crypto applications that \u201cmess with the primal forces of regulation\u201d is necessary, says Shark Tank host and millionaire venture capitalist Kevin O\u2019Leary, who argued that Tornado Cash and similar services are preventing real institutional capital from coming into the space.<\/p>\n
In a <\/strong>discussion<\/a> on Crypto Banter on Saturday, O\u2019Leary, also known as Mr. Wonderful, suggested that applications like Ethereum-based crypto mixer Tornado Cash are a part of a \u201ccrypto cowboy\u201d culture that shouldn\u2019t have a place in the industry. <\/p>\n Instead, O\u2019Leary is of the view that crypto needs a \u201crules-based environment\u201d in order to attract real institutional capital into the digital-asset industry, and much of that regulation needs to stamp out protocols like Tornado Cash, which enables users to conduct anonymous transactions and therefore potentially engage in criminal activity.<\/p>\n In the discussion, O\u2019Leary didn\u2019t back down on his opinion regarding the arrest of the Tornado Cash creator\u00a0Alexey Pertsev, stating: <\/p>\n \u201cAt the end of the day, it\u2019s okay to arrest that guy. Why? He\u2019s messing with the primal forces of regulation […] If we have to sacrifice him, that\u2019s okay, because we want to have some stability in that institutional capital.\u201d<\/p><\/blockquote>\n The venture capitalist said that while institutional interest in the digital-assets sector continues to increase, \u201cthey\u2019re not going to touch it while crypto cowboys are riding the fence.\u201d O\u2019Leary emphasized that \u201cuntil we get rid of this crap,\u201d there will be no \u201cstability in […] institutional capital,\u201d but he believes that the industry is slowly but surely weeding out the \u201ccowboys\u201d:<\/p>\n \u201cI think we\u2019re getting to that stage now. Maybe we\u2019re in the third or fourth inning towards that, but I\u2019m tired of this crypto cowboy crap. I want to get involved in a regulated place where we can bring billions of dollars to work. I don\u2019t need to be a crypto cowboy, and I don\u2019t want to be one because I work in the regulated world.\u201d<\/p><\/blockquote>\n But O\u2019Leary’s opinion flies in the face of the sentiment from many in the space. The U.S. Government\u2019s sanctioning of the Ethereum-based privacy tool<\/a> last week enraged many influential crypto figures who defended the need for basic privacy rights on decentralized networks. <\/p>\n Gnosis co-founder Stefan George was one of those who defended Tornado Cash, stating<\/a> that the protocol brings \u201cmuch-needed privacy\u201d to Ethereum and that writing open-source software should be recognized as \u201can expression of free speech.\u201d<\/p>\n 3\/ The Tornado Cash team is amazingly talented and brought much-needed privacy to Ethereum. Hopefully, everyone will recognize again, that writing software is an expression of free speech and tech is neutral.<\/p>\n \u2014 Stefan George (@StefanDGeorge) August 12, 2022<\/a><\/p><\/blockquote>\n Chainlink Lead Developer Advocate Patrick Collins also said<\/a> that the decision to remove Tornado Cash\u2019s GitHub account is \u201cmuch worse than sanctioning a website\u201d as code is speech and by doing so the U.S. Treasury is violating the first amendment of the U.S. Constitution.<\/p>\n It’s gotten MUCH worse.@TornadoCash<\/a> Github accounts and codebase has been entirely removed. <\/p>\n This is much worse than just sanctioning a website. <\/p>\n Code is speech, so we are potentially violating the first amendment. <\/p>\n Paging lawyers @adamdavidlong<\/a><\/p>\n \u2014 Patrick Collins (@PatrickAlphaC) August 8, 2022<\/a><\/p><\/blockquote>\n Ethereum educator Anthony Sassano shared in a Tweet to his 218,000 followers that he was temporarily banned<\/a> from decentralized finance (DeFi) lending protocol AAVE, after his address was blacklisted for recieving 0.1 Ether (ETH) from an anonymous person<\/a> via Tornado Cash. Sassano went on to note that the “main conclusion I have come to from recent events is that Ethereum is more of a concern to governments\/nation states than Bitcoin.” <\/p>\n I think the main conclusion I have come to from recent events is that Ethereum is more of a concern to governments\/nation states than Bitcoin.<\/p>\n The implications of this will define the next few years of this industry.<\/p>\n \u2014 sassal.eth (@sassal0x) August 14, 2022<\/a><\/p><\/blockquote>\n Related: Tornado Cash co-founder reports being kicked off GitHub as industry reacts to sanctions<\/em><\/strong><\/a><\/p>\n\n
\n
\n