overregulation

#SECb Chair Cautions Against #Overregulation Turning Crypto Into #Surveillance Tool

According to #ChainCatcher , SEC Chair Paul Atkins warned on December 15 during a roundtable hosted by the SEC’s Cryptocurrency Working Group that excessive or improper regulation could transform cryptocurrencies into tools for financial surveillance.

Atkins pointed out that blockchain technology is highly efficient at linking transactions to individuals, which raises concerns if government oversight becomes too intrusive. He cautioned that treating every cryptocurrency wallet and transaction as a potential surveillance target could effectively create a comprehensive financial monitoring system.

He emphasized that it is possible to strike a balance between national security requirements and the protection of individual privacy. As traditional financial institutions continue to enter the cryptocurrency sector, discussions around privacy and oversight are becoming more prominent. Recent criminal cases, he noted, have further highlighted the regulatory challenges facing the industry.