Crypto Morning: SEC, FINRA eye crypto, Tornado Cash users demand justice, RWA hits $10 billion TVL

• Crypto remains under the oversight of SEC and FINRA, heads of enforcement confirmed on Monday. 
• Market participants urged a Texas federal judge to make clear that the government’s sanctions on Tornado Cash were unlawful. 
• RWA sector crosses $10.6 billion in total value of assets locked on-chain, new all-time high. 

Crypto continues to remain under the oversight of US financial regulators, the Securities & Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), according to a Law360 report on Monday. 

The United States (US) Department of Treasury recently reviewed its legal and policy issues and removed the economic sanctions against Tornado Cash, per a report on its official website. However, challengers are urging a Texas federal judge to declare the government’s initial act “unlawful,” even though the case is moot. 

A key category of crypto tokens, Real World Assets (RWA), crossed $10.679 billion in total value of assets locked (TVL) on Tuesday, hitting a new all-time high. 

US regulators are watching crypto, though legal actions have been dropped

According to a Law360 report, even as the SEC drops its investigation and lawsuits on several crypto exchanges and crypto-related entities, it continues to maintain its oversight on the sector. On Monday, the heads of enforcement of the SEC and FINRA announced their oversight of crypto, even as the regulators back off on cases and investigations in the industry. 

Why this matters

The crypto watchdog, SEC, eased its “regulation by enforcement” approach and dropped several investigations and lawsuits, including the legal actions against Tornado Cash, Coinbase, and other crypto entities in the Trump administration. However, FINRA’s 2025 Annual Regulatory Oversight Report shows that the regulators continue to watch risks arising from the use of third-party vendors in crypto and extended-hours trading services, increasingly common in crypto. 

What to expect

Recent hacks like the Lazarus Group’s $1.5 billion crypto exploit on Bybit generate fear and uncertainty among traders, however, oversight from the SEC and FINRA could help shape policy and regulation in the sector in the long term.

Challengers demand Tornado Cash sanctions be declared ‘unlawful’ 

The party of market participants who challenged the US DOJ’s sanction of Tornado Cash expect a Texas federal judge to declare the act of sanctioning the crypto mixer “unlawful.” While the DOJ website declares the case mute and makes it official that sanctions have been lifted, the tussle continues. 

Why this matters

If the DOJ’s actions are deemed unlawful, the department can be challenged in court and face penalties. The court can issue orders to prevent such “unlawful” actions by the DOJ in the future, if it has been proved by the challengers. 

What to expect

In its press release regarding the matter, the Treasury said, 

“We remain deeply concerned about the significant state-sponsored hacking and money laundering campaign aimed at stealing, acquiring, and deploying digital assets for the Democratic People’s Republic of Korea and the Kim regime.

The US Treasury will continue to monitor closely any transactions that may benefit malicious cyber actors or the DPRK, and US persons should exercise caution before engaging in transactions that present such risks.”

RWA TVL hits new all-time high above $10.6 billion

The RWA sector transforms traditional assets (such as real estate, investments, etc.) into digital assets through tokenization and has gained traction with large asset management giants like BlackRock and Fidelity among others. 

Why this matters

RWA TVL crossed $10.679 billion onTuesday, March 25, according to DeFiLlama data. TVL represents the total value of assets locked or secured by the blockchain, and higher TVL signals higher confidence among market participants.  

What to expect

Fidelity recently filed a US Treasury tokenization proposal on the Ethereum blockchain with the SEC. The regulator’s approval could pave the way for tokenization of more financial investments and products on the blockchain, driving adoption and higher TVL in the sector.