SEC Commissioner Hester Peirce Calls for Exploring New Technical Solutions That Balance KYC, Anti-Money Laundering, and Privacy Protection

Odaily Planet Daily News: In a speech during the "Regulatory PETshop" event series, U.S. SEC Commissioner Hester Peirce stated that privacy-enhancing technologies (PETs) are crucial for the digital finance era, and regulators should not shape the trajectory of technological development based on expanding surveillance infrastructure.

Hester Peirce pointed out that protecting financial privacy and security are not opposing forces. Cryptographic technology can help ordinary users guard against data breaches, theft, and malicious behavior. She criticized the current U.S. regulatory discussion for overemphasizing surveillance needs while neglecting the legitimate public demand for privacy-protective products. She also noted that existing regulations require securities transfer agents to record the names and addresses of holders, but the mechanism of public blockchain addresses can verify asset ownership without revealing personally identifiable information, thereby reducing the risk of sensitive data exposure for investors.

Furthermore, Hester Peirce called on developers to collaborate with the SEC's Crypto Task Force to explore new technical solutions that reconcile KYC, anti-money laundering, and privacy protection requirements.