Overview
- Chair Paul Atkins warned that public blockchains plus chain analytics could create a financial panopticon if every wallet, protocol, and transaction is treated as a reportable surveillance node.
- Atkins urged limits on bulk data collection and cited tools like zero-knowledge proofs and selective disclosure as ways to verify compliance without exposing full transaction histories.
- Commissioner Hester Peirce said financial privacy needs reassessment, argued that privacy should not signal criminal intent, and cautioned against imposing Bank Secrecy Act duties on non-custodial software developers.
- Industry participants, including the Blockchain Association, the Crypto Council for Innovation, and Zcash representatives, pressed for privacy standards and presented privacy-focused wallet and identity designs.
- The session produced no immediate rule changes as the SEC’s Project Crypto advances proposals, including an innovation exemption targeted for late January 2026, with coordination continuing across agencies.