SEC’s Peirce Advocates Privacy Protection in Crypto

hester peirce oil painting
Key Points:
  • Hester Peirce calls for safeguarding privacy tech in crypto space.
  • Privacy-focused protocols and self-custody emphasized.
  • Potential regulatory clarity could impact privacy assets.
SEC’s Peirce Advocates Privacy Protection in Crypto

SEC Commissioner Hester Peirce advocated for robust privacy protections in cryptocurrency, emphasizing individual rights to self-custody assets, during her August 4, 2025 speech.

Her stance signifies potential regulatory shifts that could impact privacy-focused crypto assets, influencing policy and market stability.

SEC Commissioner Hester Peirce has emphasized the need to protect privacy-focused technologies in the crypto world. She advocates for legal safeguards to ensure financial privacy and support open-source software developers amid evolving blockchain regulations.

Peirce’s statements highlight the importance of self-custody in crypto. Stating developers shouldn’t be liable for user actions, she opposes unnecessary intermediary involvement in peer-to-peer transactions. Her remarks echo a push for a more balanced regulatory framework.

Immediate impacts of Peirce’s advocacy could be seen in how markets perceive privacy-focused assets. It potentially adds momentum for Ethereum-based privacy applications and existing privacy coins. The call for legal clarity is significant for crypto development.

Possible changes due to Peirce’s stance include market shifts regarding privacy tokens like Monero and Zcash. Enhanced regulatory perspectives could boost developer and investor confidence, fostering an environment of innovation and financial autonomy.

Although concrete regulatory adjustments remain, Peirce’s views may inform future policy dialogues at the SEC. Her support could influence regulatory landscapes, with long-term conditions favoring decentralized privacy solutions and self-custody technologies.

Integration of privacy features into mainstream DeFi protocols and L1/L2 chains might increase. Peirce’s current posture offers a permissive outlook contrasting prior regulatory actions, promising future alignment of crypto innovations with legal standards.

“As that recommendation suggests, we should welcome privacy-protecting technologies and safeguard the right of individuals to self-custody their crypto assets. And developers of open-source privacy software should not have to answer for the actions that other people take using the software they wrote… [W]e should not ask peers transacting with one another, where no intermediary exists, to collect and report information on each other… Doing so would deputize us to surveil our neighbors—a practice antithetical to a free society. Nor should we require an intermediary to step in the middle of peer-to-peer transactions.” — Hester Peirce, Commissioner, U.S. Securities and Exchange Commission (SEC)
Disclaimer:

The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.

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