SEC Schedules Roundtable on Privacy and Financial Surveillance in December

The U.S. Securities and Exchange Commission (SEC) has announced a roundtable discussion focused on privacy and financial surveillance, set to take place in December. This event reflects a growing emphasis on privacy within the cryptocurrency sector.

Key Takeaways

The SEC’s privacy roundtable is scheduled for December 15.
The discussion aims to address privacy concerns in the cryptocurrency space.
Recent legal cases have raised alarms about the future of privacy technology in the U.S.
Industry advocates argue that prosecutions are discouraging the development of privacy-focused tools.
Reaffirmation from the Department of Justice regarding open-source development has emerged amid these concerns.

Privacy, SEC, United States Privacy tokens like Zcash experienced a price surge beginning in October. Source: CoinMarketCap

The focus on privacy has intensified following several significant legal outcomes. Notably, the Tornado Cash developer, Roman Storm, received a partial guilty verdict in June, and the sentencing of the Samourai Wallet developer in November further stirred discussions about the safety of privacy technologies.

Naomi Brockwell, founder of the Ludlow Institute, emphasizes the importance of privacy, stating, “Authoritarians thrive when people have no privacy. When those in charge start being hostile to privacy protections, it is a major red flag.” This resurgence of interest in privacy underscores its foundational role in crypto’s cypherpunk origins — creating secure communication channels in adverse conditions.

SEC to hold privacy and financial surveillance roundtable in December

The SEC’s Crypto Task Force will host a roundtable on December 15, where industry leaders and SEC representatives will explore shared challenges and potential solutions. However, no definitive policy proposals will be presented during this discussion. The topic of privacy has gained momentum due to recent events, such as notable legal cases involving privacy technology.

Legal Concerns in the Crypto Community

The convictions related to open-source software development have raised serious concerns about the future of privacy technologies in the United States. These legal cases set a worrying precedent, leading many in the cryptocurrency community to fear that such actions will deter developers from creating privacy-preserving solutions.

Industry leaders and advocates compare these prosecutions to absurdities, such as holding a car manufacturer accountable for criminal acts committed by others using their vehicles. Journalist Lola Leetz notes, “People should not be held accountable for what other people do with the tools they build.”

In response to these pressing concerns, Matthew Galeotti, acting assistant attorney general for the DOJ’s criminal division, recently affirmed that merely writing code, without ill intent, is not a crime. “The department should not leave innovators guessing as to what could lead to criminal prosecution,” he stated, offering some reassurance to developers in the field.

Related: Crypto investors flee visibility for anonymity as privacy coins surge 80%

As the cryptocurrency community navigates these complex issues, the upcoming SEC roundtable may offer a crucial platform for dialogue about the future of privacy and surveillance in financial technologies.