In remarks published by the U.S. Securities and Exchange Commission, an SEC Commissioner speaking in a personal capacity argued that privacy-enhancing technologies should play a larger role in financial regulation, especially in the agency's crypto work. She said privacy and investor protection can support each other and called for regulatory approaches that reduce unnecessary collection of personally identifiable information while still allowing authorities to target illicit activity. Using the SEC Crypto Task Force's work as an example, she noted that current regulations require transfer agents to record the name and physical address of security holders, while permissionless crypto networks track holdings through pseudonymous public wallet addresses. She suggested that giving transfer agents flexibility to record that securities reside on a blockchain at a public address could reduce the need for investors to disclose home addresses and avoid creating another repository of sensitive data. She also invited firms developing tools that could meet Know Your Customer (KYC) and anti-money laundering requirements while limiting the collection and storage of personally identifiable information to engage with the Crypto Task Force.
U.S. Securities & Exchange Commission2026-05-27
U.S. Securities and Exchange Commission Commissioner advocates privacy-enhancing technology for on-chain securities records and KYC compliance
A U.S. Securities and Exchange Commission Commissioner, speaking personally, argued that privacy-enhancing technologies should play a larger role in financial regulation, particularly in crypto, and that privacy and investor protection can reinforce each other. She suggested allowing transfer agents to record that securities reside on a blockchain at a public address instead of collecting investors’ home addresses, and invited firms developing tools that meet Know Your Customer and anti-money laundering requirements while limiting personally identifiable information to engage with the SEC Crypto Task Force.