SEC Chairman Gary Gensler has cautioned against the risks of unchecked crypto surveillance, which he believes could lead to mass monitoring by the federal government. Gensler emphasized the need for balanced policies that support Countering the Financing of Terrorism efforts while safeguarding user privacy. He criticized the overreach of tools like the consolidated audit trail, arguing that not every transaction should necessitate a report. Gensler also highlighted the importance of ensuring that liquidity and crypto markets are not hindered by excessive compliance burdens. His comments underscore the ongoing debate over how to effectively regulate the rapidly evolving cryptocurrency sector without stifling innovation or infringing on individual privacy rights.