CoinDesk
Hester Peirce is leaving the SEC after more than eight years as a commissioner. In remarks at SIFMA’s Digital Assets Conference on September 23, she argued that privacy and security need not be opposing goals. She said a regulatory framework that allows and encourages privacy-enhancing technology is still missing.
Peirce frequently dissented from the SEC’s use of enforcement actions in place of rules for digital assets. She also proposed a token safe harbor and led the agency’s Crypto Task Force.
Will Schwartz, a policy associate at the Blockchain Association, argues that financial rules built around collecting and storing personal data create risks for consumers. He points to zero-knowledge proofs and verifiable credentials as ways to demonstrate eligibility to transact without revealing unnecessary information.
The question Peirce leaves behind is how regulators would accommodate those tools while preserving the information law enforcement needs to pursue illicit activity.
Frequently asked questions
-
What regulatory gap did Peirce identify in her final remarks?
She said a framework that allows and encourages the adoption of privacy-enhancing technology is still missing.
-
How could zero-knowledge proofs affect financial compliance?
They can allow a person to demonstrate that they are permitted to transact without disclosing unnecessary personal information.
-
Why does Schwartz object to collecting large amounts of consumer financial data?
He argues that collecting and storing personal data on a large scale creates privacy and security risks for consumers.
-
What was Peirce’s approach to digital asset regulation at the SEC?
She frequently opposed relying on enforcement actions instead of clear rules, proposed a token safe harbor and led the Crypto Task Force.
-
Would privacy-focused compliance eliminate law enforcement access to information?
That is not the approach Schwartz advocates. He calls for rules that limit unnecessary data exposure while providing law enforcement the information needed to pursue illicit activity.
Crypto News
WuBlockchain
WatcherGuru
CryptoSlate
CoinTelegraph
TheBlock