SEC Commissioner Hester Peirce says zero-knowledge proofs can improve the efficiency of financial regulatory verification

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SEC Commissioner: Transparent blockchain ledgers combined with zero-knowledge proofs could reshape financial regulation

PANews, September 24 — U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce said at the SIFMA Digital Asset Conference that regulators should reconsider traditional financial-monitoring methods, shifting from “collecting more data” toward using new technologies for more precise verification. Peirce said technologies such as zero-knowledge proofs can verify whether users meet requirements related to age, citizenship, accredited-investor status, or sanctions lists without disclosing underlying personal information such as names, income, or addresses. Hester Peirce recommended that the federal government and regulated entities adopt attribute-based verification where technically feasible, and allow registered entities to rely more on third-party identity verification to reduce the repeated collection and storage of sensitive information. Peirce also said that public blockchains have permanent, public, and auditable transaction records, which, when combined with blockchain forensics tools...

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Key points

U.S. Securities and Exchange Commission Commissioner Hester Peirce spoke at the SIFMA Digital Asset Conference.
Peirce said that zero-knowledge proofs can verify age, citizenship, accredited-investor status, or sanctions-list requirements without disclosing information such as names, income, or addresses.
Peirce recommended adopting attribute-based verification when technically feasible and allowing registered entities to rely more on third-party identity verification.
The report stated that public blockchains have permanent, public, and auditable transaction records.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

A zero-knowledge proof is a verification method that can prove someone meets specific conditions without publicly disclosing the relevant personal information. Attribute-based verification focuses on whether conditions are met rather than repeatedly collecting complete identity information.

Why it matters to readers

This suggests that regulatory discussions may shift from collecting more personal data toward more precisely verifying specific compliance conditions.

This concerns identity verification, privacy protection, and blockchain regulation; the key change is reducing unnecessary disclosure of personal information.

Risks and unknowns

The original report is incomplete, and the specific remarks still require verification.
The evidence does not show that the SEC has issued a formal policy, pilot program, or technical standard.
The evidence does not show that financial institutions have already adopted the relevant solutions.

SEC Commissioner Hester Peirce says zero-knowledge proofs can improve the efficiency of financial regulatory verification

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