SEC’s Hester Peirce Calls for Less Data Collection in Crypto Oversight

Outgoing SEC Commissioner Hester Peirce has argued that financial surveillance should collect less personal data, advocating for privacy-preserving technologies in crypto regulation.

In a speech at a New York conference, Peirce criticized the current trajectory of “more data collection, more intermediary surveillance,” stating it turns financial systems into a “panopticon.” She proposed an alternative path using new technologies to catch criminals while better protecting privacy.

Peirce specifically highlighted cryptographic tools like zero-knowledge proofs and attribute-based credentials, which can verify facts like age or investor status without exposing underlying personal details. She also urged regulators to allow firms to rely on identity checks performed by other institutions instead of each entity collecting the same sensitive data.

The commissioner, known as “Crypto Mom” for her industry-friendly stance, is set to leave the SEC in November. Her remarks come as U.S. regulators work on crypto rulemaking following a shift in the agency’s approach under the current administration.