Crypto urges SEC to see the good in blockchain privacy tools

During the SEC's sixth crypto-focused roundtable, industry executives, including StarkWare's Katherine Kirkpatrick Bos and SpruceID's Wayne Chang, urged the agency to change its assumption that privacy tool users are inherently wrongdoers. They argued for a shift where users are presumed to be acting in good faith until evidence suggests otherwise, emphasizing the need for balance despite the reality that criminals use these tools. Chang noted that privacy features could increase stablecoin adoption. Furthermore, the discussion highlighted that current Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, often relying on easily faked documents, are antiquated due to AI advancements. Executives suggested cryptography-based tools could improve identity verification while preserving necessary privacy. SEC Chair Paul Atkins acknowledged that crypto offers privacy-preserving tools beneficial for legitimate business strategies but warned against turning the ecosystem into a "financial panopticon" through over-regulation.

(Source：Cointelegraph)