SEC’s Peirce Defends Crypto Privacy Rights as Tornado Cash Developer Awaits Verdict

Key Points

1. Peirce argues that the Bank Secrecy Act's framework is outdated and infringes on privacy, advocating for zero-knowledge proofs and encrypted networks.

2. The case against Tornado Cash developer Roman Storm involves disputed evidence, including a misattributed Telegram message related to the $600 million Axie Infinity hack.

3. Peirce criticizes the SEC's Consolidated Audit Trail (CAT) for excessive data collection, with calls for reforms to address privacy concerns.

4. The Ethereum Foundation has pledged $500,000 for legal defense in the Tornado Cash case, highlighting industry support for open-source software development.

5. Peirce's stance aligns with broader regulatory shifts under the Trump administration's 'Project Crypto' initiative, aiming to modernize crypto regulations.