SEC COMMISSIONER HESTER PEIRCE CALLS FOR RETHINKING KYC AND FINANCIAL SURVEILLANCE In one of her final speeches as an SEC Commissioner, Peirce argued that the current KYC/AML system collects enormous amounts of personal data while failing to effectively identify bad actors. She called for regulators to embrace cryptographic tools like zero-knowledge proofs that can verify identity, citizenship, accredited investor status or sanctions compliance without revealing underlying personal information. Peirce also argued that permissionless networks can reduce unnecessary data collection while maintaining transparent, auditable transaction records. “Americans deserve both security and privacy.”