Wu Blockchain (@WuBlockchain): SEC Commissioner Peirce Calls for Zero-Knowledge Proofs to Replace Data-Heavy KYC/AML Practices

SEC Commissioner Peirce Calls for Zero-Knowledge Proofs to Replace Data-Heavy KYC/AML Practices SEC Commissioner Hester Peirce said the agency’s Innovation Exemption provides a temporary pathway for tokenized securities to trade through AMMs, helping prevent overseas markets from monopolizing tokenized exposure to U.S. equities while serving as a bridge to longer-term rules. She also criticized the current KYC/AML model for creating ever-larger “data haystacks” with limited effectiveness while turning the financial system into a “panopticon,” and called for zero-knowledge proofs and attribute-based credentials to verify compliance without collecting or repeatedly storing users’ sensitive personal data.