U.S. SEC chief warns watchdogs need to be limited in tapping crypto's power to snoop

SEC Chairman Paul Atkins cautioned that without formal policies, the federal government could exploit the crypto sector's capabilities for mass surveillance, potentially peering into individuals' financial lives through intermediaries. He argued that the government's "voracious appetite for data" is incompatible with a free society, citing concerns over tools like the consolidated audit trail (CAT) and the potential for blockchain to become history's "most powerful financial surveillance architecture." Atkins stressed the need for policies shielding lawful financial transactions from "bulk surveillance." While acknowledging the need for illicit finance protections, he advocated for systems that screen users without jeopardizing privacy. He warned against treating every wallet as a broker or every transaction as reportable, which would turn the ecosystem into a "financial panopticon."

(Source：CoinDesk)