SEC Chairman Paul Atkins warns that cryptocurrencies may become tools for financial surveillance

SEC Chairman Paul Atkins warned on December 15 during a roundtable meeting of the SEC's cryptocurrency working group that if regulation is not careful, cryptocurrencies could become tools for financial surveillance.

Paul Atkins stated that blockchain has an efficient capability in associating transactions with individuals, which raises concerns about excessive government intervention. He cautioned that viewing every cryptocurrency wallet and transaction as a surveillance target could lead to the creation of a financial monitoring system. Paul Atkins also pointed out that a balance can be achieved between national security needs and individual privacy. As traditional finance enters this field, the debate over cryptocurrency privacy is increasingly gaining attention, and recent criminal cases have highlighted regulatory challenges.