Tornado cash isn’t a problem at all, when people don’t understand it they just shout waaa money laundering.
Tornado cash has a feature that trustlessly, via the sender or receiver of the funds, spits out proof of where the funds came from or went. It’s hardcoded and can’t be falsified. It’s open source code, this is a fact.
The real problem is governments complete incompetence.
What is money laundering? An attempt to take dirty funds and make them clean. Sending dirty funds to a big mixing pot of funds and then requesting funds out the otherside doesn’t create clean funds if you simply request that proof. You got that money from tornado cash, can you create the proof it’s legitimate please? Oh you won’t? No you can’t buy the house then. It’s very simple.
Why is tornado cash good? Because blockchains are public. If I send you a payment on the blockchain, you can go back and see everything I have ever done. I understand the government needing that access, they already have it, a random person I once paid to do a job? Nope.
Privacy from the public is important, tornado cash assists with that. Privacy from the government it doesn’t assist with, they are just too brain dead to consider even looking at how it works. A random wassie with etherscan was able to track North Korean funds, probably better than 3 letter agencies a few decades ago, and that’s a possibility for anyone. Anyone could track the North Koreans yet people think it would be used for money laundering…