SEC Commissioner Hester Peirce has urged fundamental reform of financial privacy regulations, advocating for updates to the Bank Secrecy Act (BSA) and third-party doctrine to leverage Bitcoin and cryptocurrency innovations. She emphasized that such modernization must carefully balance privacy protections with legitimate safety considerations while accommodating technological progress.
Peirce highlighted how cryptographic tools like zero-knowledge proofs and smart contracts can reduce intermediary dependencies and strengthen user privacy infrastructure. These technologies enable more secure financial interactions while minimizing traditional oversight requirements.
Industry experts have applauded Peirce’s stance, with observers including Peter Van Valkenburgh and Nate Geraci characterizing her position as a landmark defense of crypto-related financial privacy rights. Advocates contend that updated regulations could curb government overreach and prevent unauthorized financial data collection.
The commissioner’s proposal underscores a growing consensus that existing legal frameworks must evolve to integrate cryptographic breakthroughs, fostering environments where financial privacy and technological advancement collaboratively develop.