Haciyev Reşit 
U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins delivered his first official speech at a long-anticipated cryptocurrency meeting. Speaking at a roundtable titled “Financial Surveillance and Privacy,” organized by the Crypto Task Force, Atkins highlighted the delicate balance between transparency and privacy in blockchain technology.
Transparency and Risks in Public Blockchains
Atkins emphasized that public blockchains are more transparent than any traditional financial system ever built. However, he warned that this transparency could create serious risks if approached with improper regulatory frameworks. He noted that value movements on blockchains are fully traceable and that on-chain analytics firms already provide significant support to law enforcement in this area.
Atkins cautioned that poor implementation could turn the crypto ecosystem into “the most powerful financial surveillance architecture ever invented.” He stated that treating every wallet as a financial intermediary, every piece of software as an exchange, and every transaction as a reportable event could transform the ecosystem into a “financial panopticon.”
Privacy-Focused Technological Innovations
At the same time, Atkins stressed that crypto technologies offer privacy-preserving tools that are not possible in the traditional financial system. Innovations such as zero-knowledge proofs, selective data disclosure, and wallet designs that allow users to prove compliance without handing over their full financial history or personal data to governments or intermediaries were highlighted as key developments.
He noted that regulated platforms can verify user compliance without needing to maintain permanent, identity-based records of every payment, transaction, or donation. This approach, Atkins said, makes it possible to protect user privacy while still ensuring regulatory compliance.
Impact on Market Activity
The SEC Chair also warned that full transparency on public blockchains could discourage certain financial market activities. He explained that institutions need to build positions, test strategies, and provide liquidity without signaling their intentions to competitors or opportunistic traders. Making all orders and portfolio adjustments visible in real time could increase front-running, copycat trading, and market congestion. According to Atkins, this would complicate risk management and make market-making and brokerage activities less attractive.
Balancing National Security and Individual Privacy
Atkins also addressed the balance between national security and individual privacy. He stated that technology can help governments deter security threats while also preserving the privacy expectations of the American public. However, he emphasized that citizens should not be treated as inherently suspicious simply for using these tools. Protecting lawful activity from mass surveillance, he argued, is the healthiest way to safeguard both national security and fundamental civil liberties.
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