SEC to Hold Crypto Privacy Roundtable Amid Rising Industry Concerns

With privacy once again in the spotlight, the U.S. Securities and Exchange Commission’s Crypto Task Force is preparing a roundtable to examine the overlap between confidentiality and transaction monitoring in the digital-asset sector. The session reflects growing attention within the industry, prompting regulators to gather participants for a focused discussion on these issues. The SEC has announced the meeting is scheduled for December 15.

Rising Privacy Concerns Prompt SEC Roundtable

Interest in privacy has grown sharply in recent months. The partial verdict in the case involving Tornado Cash developer Roman Storm sparked renewed discussion, which was further intensified by the November sentencing of the Samourai Wallet developer. At the same time, the value of privacy-focused tokens has surged over the past two months, keeping the topic firmly in the spotlight.

The SEC intends for the roundtable to follow the same style as its previous sessions. Industry participants and agency staff will review where their interests overlap, what challenges they share, and which approaches may help ease tensions between privacy protection and oversight. The meeting is strictly a forum for discussion, without any commitment to produce policy outcomes.

Privacy Concerns Extend Beyond Regulation

The topic of privacy has drawn attention far beyond regulatory circles. Experts like Naomi Brockwell, who leads the Ludlow Institute and focuses on promoting personal freedom through technology, have highlighted why the debate matters. She emphasized that privacy is vital for protecting individuals, noting that environments with little confidentiality can enable authoritarian behavior. According to her, pushback against privacy safeguards should serve as a warning to the wider public.

Adding to this perspective, cybersecurity evangelist Josh Long expressed concern over companies that mark privacy-minded users as suspicious. His comments were informed by an observation from analyst Aaron, who reported on November 15 that X plans to display a warning for accounts using VPNs once its upcoming ‘About Your Account’ feature is rolled out. Long suggested that such labeling could discourage people from taking basic steps to protect their information online.

Privacy at the Core of Crypto’s Origins

The current focus on privacy recalls the cypherpunk principles that shaped the early days of crypto. The cryptographic tools central to the industry were created to give people secure ways to communicate and operate, especially in situations where they faced risks or unfriendly conditions. These early designs made privacy a core feature from the start—not just as a convenience, but as a vital safeguard for those who needed it.

Still, recent legal decisions have raised alarms across the industry, and several advocates have shared their concerns :

• The Blockchain Association, which supports policies favorable to digital assets, criticized the verdict involving Roman Storm, warning that it could create challenges and uncertainty for open-source developers ;

• Journalist and crypto advocate Lola Leetz said many misunderstand the Samourai Wallet and Tornado Cash cases, noting developers should not be blamed for how others misuse their tools.

Galeotti Stresses Intent Matters in Software Prosecutions

The Justice Department’s acting assistant attorney general for the criminal division, Matthew Galeotti, addressed the issue in August. He explained that the agency is stepping back from its earlier approach of targeting open-source developers solely for publishing code. He emphasized that writing code without harmful intent should not be treated as criminal behavior. 

Galeotti also noted that legal action should not replace proper legislation, adding that developers should not be left in a position where they cannot clearly determine what activity might expose them to prosecution.