You can still use the Tornado protocol for handling double-blind experiments in a lab without fear of being sanctioned.
You cannot launder money, though. This is forbidden regardless of which method you use (crypto, art, car washes, etc). These sanctions are saying "we consider this specific use of this specific algorithm to be illegal, so if you interact with it via these wallets you will be sanctioned too". But they are not saying "this algorithm is illegal".
Maybe, but you will need to prove to the courts that labs actually use that algorithm that way. I don't think any are doing that, though I'll admit to not knowing much about how double blind studies are run in the real world.
Even then, the algorithm and Tornado are not the same thing. It seems unlikely you can use Tornado itself for this purpose, even if the algorithm itself is useful.
I think if the algorithm were deployed alongside a processes for combating money laundering.
The press release specifically calls out a lack of efforts to block known bad actors and illegal funds from using their system:
> Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks.
So you probably can provide a mixing service if you can find ways to reasonably limit money laundering on it. This would probably be antithetical to the decentralization principles built into Tornado, but might allow continued legal operations.
You cannot launder money, though. This is forbidden regardless of which method you use (crypto, art, car washes, etc). These sanctions are saying "we consider this specific use of this specific algorithm to be illegal, so if you interact with it via these wallets you will be sanctioned too". But they are not saying "this algorithm is illegal".