The Securities and Exchange Commission (SEC), the agency that regulates U.S. financial markets, is stepping up changes in line with the clifferpunk values promoted by Bitcoin (BTC) enthusiasts. This was revealed at a roundtable held on December 15th.
The event focused on “Financial Surveillance and Privacy.” Attracting the attention of Bitcoiners around the world They advocate loosening state control. This was the sixth roundtable of the virtual currency task force created by President Donald Trump, as reported by CriptoNoticias.
Among the speakers was Commissioner Hester M. Peirce. She emphasized that just like there is privacy in the home, people want to have privacy economically without government intervention.
In this country, people expect privacy within their homes. The law creates barriers to prevent government surveillance of people suspected of committing no crime. Our economic lives do not have similar expectations or privacy protections.
Hester M. Peirce, SEC Commissioner;
For civil servants, Lack of financial privacy is disconcerting. “An anti-financial privacy ethic that has been embedded in our national consciousness for decades has made mass surveillance the norm when it comes to our financial system.”
Financial surveillance should not exist even if there is nothing to hide
He said people don’t want governments to monitor their financial transactions. Ignore it because you have “nothing to hide”. But he doesn’t think there’s anything wrong with collective acceptance.
“The national deterioration of financial privacy and the regulations that protect it require change, and cryptocurrencies are prompting a reassessment,” Peirce emphasized.
On the one hand, virtual currencies open up new possibilities for conducting transactions without financial intermediaries, which are central to existing financial surveillance programs. As our private transactions become increasingly disintermediated, governments will receive less information through traditional channels. On the other hand, public blockchain networks, where many cryptocurrency transactions take place, are visible to everyone, creating a demand for tools that protect privacy.
Hester M. Peirce, SEC member attorney.
As the use of Bitcoin and cryptocurrencies increases, public and relevant government agencies We need to rethink how and when we monitor financial transactionshe pointed out. In this way, the server sows the seeds of a privacy-focused regulatory framework.
“Governments should not assume malicious intent when taking steps to protect people’s privacy. Privacy protection should be the norm and not an indication of criminal intent.”
As he listed, governments should resist the temptation to force intermediaries to facilitate financial oversight, avoid imposing regulatory obligations (such as bank secrecy laws on software developers who have no control over users’ assets or the ability to override user decisions), and go after bad actors who use privacy tools for “illicit purposes.”
Technological advances expand discussion of financial privacy
Peirce also pointed out that technological advances such as crypto mixers and zero-knowledge proofs are expanding the debate around financial surveillance and privacy issues.
“While the SEC does not endorse any particular product, understanding how these technologies work will inform policymakers to address the threats facing this country without compromising civil liberties,” he said.
Commissioner Mark T. Ueda classified the roundtable’s topics as “of fundamental concern to the American people.” “American history reflects a deep skepticism about government intrusion into people’s private lives,” he says. This, he noted, is despite the fact that the nation’s founders sought to protect this right to freedom through the promulgation of the Fourth Amendment.
“We must recognize that we cannot tolerate a regulatory framework that creates an all-powerful financial surveillance system that instills fear of constant surveillance in all Americans,” he stressed, in line with Bitcoiner ideals. Nevertheless, highlighted the challenges this entails..
As part of this challenge, Ueda said the rise of new financial technologies means there is a need to continually assess how to protect privacy and personal freedom. He stressed that surveillance by both governments and private parties raises fundamental questions about the nature of individual privacy.
Still he thought Indiscriminate collection of large amounts of personal data is incompatible We have adopted a framework that values privacy and financial independence. Therefore, he believes it is necessary to counter it.
The Commissioner’s words resonate and please cypherpunks who champion widespread use of encryption and privacy-enhancing technologies as a path to social and political change. But as the saying goes, “words go a long way to action.”
It remains to be seen whether the expressed desire for economic privacy and surveillance will be implemented.. So far, what happened with this event appears to be moving in the right direction, setting a reference point for the world to closely follow the United States.