The US Securities and Exchange Commission’s Crypto Task Force has reportedly organized a roundtable discussion scheduled for December this year to address rising concerns about privacy and financial surveillance in the cryptocurrency ecosystem.
This news has revealed the current state of the cryptocurrency industry, noting that most investors now prioritize privacy concerns. The exact date for this privacy roundtable is scheduled for December 15.
Additionally, sources close to the matter have hinted that crypto industry leaders and SEC officials will address common challenges faced in this sector and explore possible solutions similar to those discussed in other SEC roundtables. However, these officials will not provide specific policy recommendations.
Crypto investors demonstrate renewed focus on Privacy concerns in the industry
Analysts have discovered that privacy is becoming a pressing issue in the crypto industry due to several recent events within the ecosystem. Some of these events include the partial guilty verdict in June for Roman Storm, a developer of Tornado Cash, the sentencing of the Samourai Wallet developer in November, and the price hikes of privacy tokens over the last two months.
In an X post, Naomi Brockwell, founder of the Ludlow Institute, an organization that promotes freedom through technology, weighed in on the topic of discussion. Brockwell acknowledged that Authoritarian leaders thrive when people lack privacy. Based on her argument, when these leaders demonstrate hostility towards privacy protections, they ignite serious concerns.
Notably, the renewed focus on privacy traces back to the origins of cryptocurrency, shaped by the ideas of the crypto community’s cypherpunks. At this time, reports revealed that the primary reason for the development of cryptographic technology in the ecosystem was to ensure secure communication between individuals in high-risk situations.
Meanwhile, the term “cypherpunk” in the cryptocurrency sector refers to individuals who advocate for the use of strong cryptography to safeguard online privacy, freedom, and decentralization, leading to advancements in the crypto space.
On the other hand, legal experts disclosed their findings, pointing out that the ruling in the Storm trial and other legal cases where open-source software developers were convicted or imprisoned for establishing non-custodial and privacy-centered protocols sets a disturbing example for privacy technology in the United States.
The raised concerns about privacy prompt relevant authorities to take action
Regarding the situation stirred up by investors on privacy concerns, crypto executives and supporters commented that they believe these prosecutions seek to prevent developers from creating tools that safeguard user privacy.
Journalist and Bitcoin advocate Lola Leetz compared the verdict in the Samourai Wallet case to the US government’s move of accusing a Japanese-based automotive manufacturer, Toyota, of being part of a conspiracy simply because some criminals use their cars.
Following this act, Leetz stated that people should not be held accountable for how others use the tools they create. In response to the rise in privacy concerns, Matthew Galeotti, the acting Assistant Attorney General for the Department of Justice’s Criminal Division, released a statement in August, noting that the agency will halt the prosecution of open-source software developers solely for writing code.
Galeotti made these remarks after acknowledging that their stance is based on the argument that writing code without malicious intentions is not considered a crime. The acting assistant attorney general further explained that the department will not adopt the use of indictments as a method to establish regulations. According to Galeotti, what they actually aim to do is notify innovators of the actions that might result in criminal prosecution.
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