The U.S. Securities and Exchange Commission (SEC) recently convened a roundtable to discuss the integration of privacy tools in blockchain technology, emphasizing the importance of balancing privacy with regulatory oversight. SEC Chair Gary Gensler, along with industry experts, highlighted the necessity of privacy tools beyond illicit activities, cautioning against transforming cryptocurrency into a surveillance mechanism. Representatives from KuCoin, a prominent crypto exchange, participated in the discussion, advocating for the modernization of Know Your Customer (KYC) and Anti-Money Laundering (AML) processes through cryptographic methods. Katherine Kirkpatrick Bos and Wayne Chang stressed the importance of updating compliance measures to safeguard user privacy while effectively preventing criminal activities. The roundtable also addressed the growing demand for privacy in stablecoins, with KuCoin noting the potential for enhanced blockchain adoption through improved privacy features.