SEC Commissioner Hester Peirce has called for an end to mass KYC data collection, warning that current AML systems create massive databases of sensitive information vulnerable to hacking, leaks, and exploitation. She stated these centralized repositories put crypto holders at risk of phishing and physical attacks. Peirce is advocating for the adoption of zero-knowledge proofs as a privacy-preserving alternative. This technology would allow users to verify they meet regulatory requirements without exposing personal information, eliminating the need for extensive data retention by financial intermediaries.