SEC Chairman Paul Atkins warns that cryptocurrencies could become a tool for financial surveillance.

Odaily Planet Daily reports that SEC Chairman Paul Atkins warned at a roundtable meeting of the SEC's Cryptocurrency Working Group on December 15 that cryptocurrencies could become a tool for financial surveillance if not properly regulated.

Paul Atkins stated that blockchain's efficiency in connecting transactions and individuals has raised concerns about excessive government intervention. He cautioned that treating every cryptocurrency wallet and transaction as a target for surveillance could lead to the creation of a financial surveillance system.

Paul Atkins also pointed out that a balance can be struck between national security needs and individual privacy. As traditional finance enters the field, the debate over cryptocurrency privacy is gaining increasing attention, and recent criminal cases highlight the regulatory challenges.