SEC Chair Paul Atkins cautioned that excessive regulation could transform the crypto ecosystem into a powerful financial surveillance structure. Speaking at the SEC Crypto Task Force's sixth roundtable, Atkins warned against treating every wallet as a broker, every software as an exchange, and every transaction as reportable, which could turn the industry into a "financial panopticon." Commissioner Hester Peirce echoed these concerns, emphasizing that privacy should be the norm rather than a signal of criminal intent. Peirce urged the government to avoid enforcing intermediaries for regulatory control or surveillance purposes.