Financial freedom advocate Hester Pierce, from the SEC, passionately argues for privacy in financial matters in a stirring address.

Commissioner Hester Peirce, affectionately known as "Crypto Mom," delivered a passionate address at the Science of Blockchain Conference, where she called for a rethinking and modernisation of the financial surveillance regime.

Peirce dedicated a significant portion of her speech to the role of new technologies in protecting individual privacy, a fundamental American right. She highlighted the potential of technologies like cryptography, zero-knowledge proofs, and public blockchains to empower individuals to transact without the need for centralised intermediaries.

The Commissioner criticised the current system, which requires financial institutions to act as de facto law enforcement by filing millions of suspicious activity reports (SARs) and currency transaction reports (CTRs) each year. She argued that new technologies, like those powered by blockchain, offer a path to protect individual privacy while still fighting crime.

Peirce also challenged the "third-party doctrine," a legal principle that forms the foundation for sweeping surveillance programs like the Bank Secrecy Act (BSA). She asserted that denying financial privacy through surveillance programs or restrictions on privacy-protecting technologies undermines American freedoms.

During her speech, Peirce urged regulators to embrace, rather than fear, the potential of disintermediating technologies. She argued against criminalizing developers of open-source privacy software, stating it could stifle innovation and infringe on fundamental liberties.

The speech came at a time when a Tornado Cash developer was on trial, highlighting the tension between financial surveillance and individual privacy. However, it should be noted that Peirce's speech was not heard by the jury during the trial.

Peirce's stance reinforces her reputation as a strong advocate for innovation and individual liberty within the SEC. She challenged the idea that developers should be held liable for how their code is used by others, a stance that could have implications for future legal battles.

The speech underscores the ongoing tension between financial surveillance and individual privacy, a theme present in Peirce's previous addresses. As the world continues to evolve technologically, Peirce's call for a reconsideration of financial surveillance practices is likely to resonate with many.