Every crypto holder ought to peruse a crucial speech delivered by SEC Commissioner Peirce, encapsulating fundamental aspects of digital assets.
In a fundamental speech, SEC Commissioner Hester Peirce has called for disintermediation in the crypto industry, emphasizing the importance of financial privacy, inclusion, and fairness. Peirce believes that technologies such as zero-knowledge proofs, smart contracts, and public blockchains enable permissionless transmission of value and information without the need for centralized middlemen.
Peirce criticizes the current financial system, particularly the Bank Secrecy Act (BSA) of 55 years ago, for turning American financial institutions into de facto law enforcement agents through extensive surveillance and reporting requirements. She argues that the BSA is outdated in the crypto era, undermines the decentralized nature of blockchain, and results in over-collection of private financial data.
Peirce advocates for regulatory reforms that support innovation in crypto, balance combating financial crime with preserving constitutional financial privacy rights, and enable a regulatory framework compatible with decentralized systems. She also calls for preventing banks from discriminating against crypto users, aligning with recent White House efforts to discourage blocking of crypto investors and companies.
Using the example of switchboard operators, Peirce illustrates disintermediation through bleeding-edge technologies like cryptography, zero-knowledge proofs, and smart contracts. She points out that the ability to call someone without a third party being in the loop is now taken for granted, just as it will be with the use of cryptocurrencies and blockchain technology.
Nate Geraci, President of NovaDius Wealth Management, advises everyone involved in crypto to read Peirce's entire speech. Peter Van Valkenburgh, executive director at CoinCenter, considers Peirce's speech as one of the clearest defenses of financial privacy yet articulated. Peirce stresses the importance of guarding financial privacy "zealously."
The cryptocurrency industry is lauding Peirce for her defense of financial privacy, with her speech being referred to as a "must-read." Peirce's arguments for disintermediation in the crypto industry could pave the way for a more inclusive and equitable financial system.
- Commissioner Hester Peirce's speech on disintermediation in the crypto industry highlights the role of smart contracts, blockchain, and crypto in enabling permissionless transmission, challenging the need for centralized middlemen.
- Peirce's critique of the Bank Secrecy Act (BSA) as outdated in the crypto era, undermining blockchain's decentralized nature and resulting in over-collection of private financial data, calls for regulatory reforms supportive of innovation.
- Peirce, in her speech, advocates for a regulatory framework that balances financial crime prevention with preserving constitutional financial privacy rights, and prevents banks from discriminating against crypto users.
- Nate Geraci, President of NovaDius Wealth Management, recommends everyone in the crypto industry to read Peirce's speech, while Peter Van Valkenburgh, executive director at CoinCenter, considers it as one of the clearest defenses of financial privacy.
- The cryptocurrency industry views Peirce's speech as a "must-read," with her advocacy for disintermediation potentially leading to a more inclusive and equitable financial system.
