SEC's Peirce Says Zero-Knowledge Proofs Can Verify Compliance Without Collecting Personal Data
Summary
- Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), said zero-knowledge proofs could be used to verify regulatory compliance without directly collecting users' personal information.
- Peirce said zero-knowledge proofs could help verify whether users meet required conditions without revealing their personal data.
- She said current know-your-customer (KYC) and anti-money laundering (AML) procedures are creating a "data haystack" by unnecessarily accumulating vast amounts of personal information, and stressed the need to find ways to reduce data collection while verifying only the information required for compliance.
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Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission, said zero-knowledge proofs could be used to verify regulatory compliance without directly collecting users' personal information.
Cointelegraph reported on Sept. 24 that Peirce said zero-knowledge proofs could help verify whether users meet required conditions without revealing their personal data.
She said current know-your-customer, or KYC, and anti-money laundering, or AML, procedures are causing the unnecessary accumulation of vast amounts of personal information.
Peirce described that as a "data haystack" and emphasized the need to explore ways to reduce personal data collection while checking only the information needed for compliance.
