Pro-crypto SEC Commissioner Hester Peirce recently gave a fundamental speech on privacy, making a case for modernizing the Bank Secrecy Act (BSA) and third-party doctrine, which makes it possible for the government to obtain information without a warrant.
According to Peirce, the current financial surveillance regime is overly invasive, and it is out of step with modern tech. She argues against overregulation and the overcollecting of data, which is rarely useful.
Even though Peirce admits that safeguarding families and communities is important, she has also stressed that financial privacy should be guarded "zealously."
Disintermediation through crypto
The pro-crypto commissioner makes a case for disintermediation, using switchboard operators as an example.
Such bleeding-edge technologies as cryptography, zero-knowledge proofs and smart contracts reduce the importance of intermediaries.
When telephones were still in their infancy, companies relied on manual switchboards with human operators who were responsible for connecting calls. These operators, who could listen to private conversations, were then replaced by automated systems.
Peirce has noted that people now take for granted the ability to call someone without a third party being in the loop.
"Must-read speech"
Cryptocurrency industry voices have lauded Peirce for giving a clear defense of financial privacy.
"Commissioner Peirce just gave a must-read speech offering one of the clearest defenses of financial privacy in the context of crypto and new technologies yet articulated," Peter Van Valkenburgh, executive director at CoinCenter, said.
NovaDius Wealth Management President Nate Geraci says that everyone involved in crypto should read her entire speech.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team