SEC Commissioner Hester Peirce urged regulators to shift from bulk data collection to precise technological verification during the SIFMA Digital Assets Conference. She highlighted zero-knowledge proofs as a method to validate user attributes such as age, citizenship, and accredited investor status without exposing underlying personal information like names or addresses.
Peirce recommended that federal agencies and regulated entities adopt attribute-based verification where feasible and permit greater reliance on third-party identity providers to minimize redundant sensitive data storage. She noted that public blockchain ledgers, combined with forensic tools, offer permanent and auditable transaction records that could enhance illicit activity tracking while reducing unnecessary data collection.
SEC Commissioner Peirce Advocates Zero-Knowledge Proofs to Modernize Financial Regulation
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