SEC Chairman Paul Atkins warned that cryptocurrency could become a tool for financial surveillance.

SEC Chairman Paul Atkins warned on December 15 at a roundtable meeting of the SEC cryptocurrency working group that if regulation is not careful, cryptocurrency could become a financial surveillance tool. Paul Atkins stated that blockchain has efficient capabilities in relation to transactions and individuals, raising concerns about excessive government intervention.

He reminded that if every cryptocurrency wallet and transaction is treated as a surveillance target, it could lead to the creation of a financial surveillance system. Paul Atkins also pointed out that a balance can be achieved between national security needs and personal privacy. As traditional finance enters this field, the debate over cryptocurrency privacy is increasingly gaining attention, and recent criminal cases have highlighted regulatory challenges.