SEC Commissioner Hester Peirce advocates privacy technology

Outgoing SEC Commissioner Hester Peirce said regulators should collect less personal data and rethink financial-system monitoring. She spoke at SIFMA's Digital Assets Conference in New York on Wednesday. Peirce criticized know-your-customer and anti-money-laundering requirements. She argued that larger pools of customer data make criminals harder to find. She also said stored data increases the risk of leaks or misuse. Peirce highlighted zero-knowledge proofs and attribute-based credentials. She said these tools can verify a person's age, accredited-investor status, or absence from sanctions lists without revealing underlying personal details. Peirce urged the SEC to let firms rely on identity checks completed by other regulated institutions. She said this could reduce duplicate collection and storage of sensitive information. Peirce was appointed to lead the Crypto Task Force in 2025. She is set to leave the SEC in November.