EddieJayonCrypto
5 Aug 25
SEC Commissioner Hester Peirce called for modernizing the Bank Secrecy Act and reexamining the third-party doctrine to prevent warrantless government access to financial data. She criticized the current financial surveillance system as overly invasive and outdated, warning against excessive data col...
Pro-crypto SEC Commissioner Hester Peirce recently delivered a foundational speech emphasizing the need to modernize the Bank Secrecy Act (BSA) and reconsider the third-party doctrine, which currently allows government access to information without a warrant. Peirce highlighted that the existing financial surveillance framework is excessively invasive and outdated in relation to modern technology. She cautioned against overregulation and the unnecessary collection of vast amounts of data, which often proves to be of little value. While recognizing the importance of protecting families and communities, she firmly advocated that financial privacy must be protected "zealously."
Peirce also championed the concept of disintermediation via cryptocurrency technologies, drawing an analogy to the evolution of telephone systems from manual switchboard operators to automated connections. She explained that innovations like cryptography, zero-knowledge proofs, and smart contracts diminish the role of intermediaries. Just as people now expect to make calls without a third party listening in, Peirce envisions a financial future where intermediaries become less critical, enhancing privacy and efficiency.
The speech has received widespread praise within the cryptocurrency community. Peter Van Valkenburgh, executive director at CoinCenter, described it as one of the clearest and most compelling defenses of financial privacy in the crypto age. Meanwhile, Nate Geraci, President of NovaDius Wealth Management, urged everyone involved in cryptocurrency to read Peirce’s full remarks, underscoring the speech’s importance for the industry’s understanding and advocacy of privacy rights.