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US crypto policy discussions returned to privacy on Dec. 15, 2025, when the SEC Crypto Task Force held its sixth roundtable on financial surveillance and privacy in Washington. Panelists argued that privacy features on public blockchains can support lawful commerce, rather than signal misconduct. The agenda focused on surveillance rules and privacy.
SEC Chair Paul Atkins warned that blockchains can make transaction tracing effective. He warned that policy choices could create a powerful surveillance architecture. He also cautioned against treating every wallet and protocol as a surveillance point. Atkins said regulators can still balance national security and privacy.
Commissioner Hester Peirce urged regulators to avoid assuming bad intent when users protect their financial privacy. She said privacy should be the norm. She highlighted tools such as zero-knowledge proofs and mixers for lawful activity on transparent ledgers.
George Mason law professor J.W. Verret asked the SEC to define limits on government financial surveillance before endorsing any compliance approach for decentralized systems. He urged the agency to avoid importing the FATF Travel Rule without US rulemaking.
Verret linked privacy to investor protection. He said visible wallet activity can raise safety risks for holders. He urged broker-dealers to offer privacy tools when customers withdraw assets to self-custody. He tied that practice to obligations to safeguard customer information.
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Several speakers framed privacy as a necessity for on-chain finance. StarkWare general counsel Katherine Kirkpatrick Bos said full transparency can expose trading strategies. She also said it can reveal sensitive business data and deter adoption. She pointed to selective disclosure systems that confirm facts without sharing extra information.
Zcash founder Zooko Wilcox described privacy as a user choice in transaction design. He said privacy features can coexist with accountability and compliance options. Blockchain Association chief executive Summer Mersinger called for digital identity models that let users choose disclosures, rather than broad data collection.
The roundtable unfolded as prosecutors and courts continue to test how laws apply to privacy software. A New York jury convicted Tornado Cash co-founder Roman Storm in August 2025 on an unlicensed money-transmitting conspiracy count. Jurors deadlocked on other charges, and Storm faces up to five years in prison.
At the same time, DOJ officials have signaled narrower theories for developer liability. Acting Assistant Attorney General Matthew R. Galeotti said prosecutors have heard concerns about charging developers who publish code. He said writing code without criminal intent is not a crime.
