SEC Commissioner Hester Peirce has emphasized the importance of financial technology advancement and personal financial privacy protection. Known as 'Crypto Mom', Peirce spoke at the 'Science of Blockchain' conference on 'Financial Privacy in the Digital Age', pointing out that the U.S. government should actively use cryptocurrency technology as a tool for privacy protection instead of suppressing it.
Commissioner Peirce criticized the current financial system for being surveillance-centric. For example, in 2024, 324,000 U.S. financial institutions reported over 25 million transaction records, with 4.7 million classified as 'Suspicious Activity Reports (SAR)'. The U.S. government can access financial data without a warrant using the Third-party Doctrine, and the SEC's 'Consolidated Audit Trail (CAT)' indiscriminately tracks all investor transactions.
He explained that next-generation privacy-focused cryptographic technologies like zero-knowledge proofs, mixers, and privacy pools can reduce excessive surveillance and provide non-discriminatory transparent financial accessibility through DeFi. Peirce emphasized that "DeFi protocols that offer loan opportunities with equal and transparent conditions to everyone are an alternative to banks reluctant to lend to specific customers".
He also proposed policies, clearly stating the need to protect self-custody rights for crypto assets, refrain from regulating open-source software developers, and not force intermediaries in peer-to-peer transactions. He noted that "if we must report transaction information when trading directly with our neighbors, it would undermine the foundation of a free society".
On the same day, SEC Chair Paul Atkins officially announced 'Project Crypto', revealing a vision to lead the digitalization of U.S. financial markets. Atkins stated that "the next financial innovation should start on American soil" and is reviewing the abolition of outdated regulations incompatible with the current cryptocurrency industry. This is part of establishing a foundation for tokenized assets and emerging financial models.
Simultaneously, the White House is preparing an executive order that could penalize banks discriminating against or refusing cryptocurrency customers, following Trump's directive. This is seen as a government-level counterattack to the 'crypto company account closure' issue that began during the Biden administration, interpreted as a strong statement for eliminating discrimination and protecting the industry.
As the regulatory flow in the cryptocurrency sector shifts from mere suppression to respecting technological characteristics and privacy values, attention is focused on whether the United States can lead this change.
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