SEC Commissioner Peirce Advocates for Blockchain-Based Financial Privacy

SEC Commissioner Hester Peirce has publicly criticized centralized third parties and existing regulatory frameworks, including the Bank Secrecy Act, for enabling what she describes as 'unwarranted financial surveillance.' In a statement dated August 4, Peirce emphasized the need for regulators to adopt privacy-enhancing technologies built on blockchain and crypto protocols.

Peirce argued that privacy tools should be embraced rather than feared, as they empower legitimate users to operate without excessive oversight. 'Rather than something to be feared, we should embrace these tools' ability to help humanity live freer lives without unwarranted financial surveillance,' she said. The commissioner also warned against vilifying technology, noting that such an approach WOULD disproportionately harm lawful users.

The Bank Secrecy Act (BSA), designed to combat money laundering, came under particular scrutiny. Peirce highlighted the high compliance costs and privacy concerns associated with the BSA, calling for its reform. 'Questions about the cost, usefulness, and privacy implications of the BSA make reforming the BSA a timely topic,' she concluded.