SEC Grapples With Crypto Privacy Paradox in Landmark Roundtable
SEC officials clashed over blockchain's surveillance risks during a pivotal crypto policy discussion. Commissioner Hester Peirce argued decentralized finance necessitates rethinking financial privacy frameworks, while Chair Paul Atkins warned of creating a 'financial panopticon' through overzealous regulation.
The sixth crypto task force meeting revealed deepening philosophical divides. Peirce emphasized crypto's role in forcing regulatory evolution, stating current frameworks struggle with pseudonymous transactions. Atkins countered that blanket wallet monitoring could replicate the very surveillance states crypto seeks to escape.
Industry participants proposed technical solutions like zero-knowledge proofs, but regulators remained skeptical about implementation. The debate underscores growing tensions as blockchain activity expands beyond Bitcoin and ethereum into DeFi platforms and tokenized assets.
