SEC Commissioner Hester Peirce Calls for Exploration of New Technological Solutions Balancing KYC, AML, and Privacy Protection

Odaily News: U.S. SEC Commissioner Hester Peirce stated during a speech at the "Regulatory PETshop" event series that Privacy-Enhancing Technologies (PETs) are crucial for the digital finance era, and regulators should not base the direction of technological development on expanding surveillance infrastructure.

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

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