SEC’s Atkins Warns Crypto Risks, Advocates Privacy Tools Amid Dip

SEC Chair Paul Atkins Warns Cryptocurrency Could Become a Financial Surveillance Tool, Advocates for Privacy Technologies Amid Market Downturn and Shift to Safe Assets

  • SEC Chair Paul Atkins cautioned that cryptocurrency could become the most advanced financial surveillance system if misused.
  • Atkins supports privacy technologies like zero-knowledge proofs to maintain user freedoms and regulatory compliance.
  • The U.S. SEC has shifted to a pro-crypto stance under Atkins and the Trump administration.
  • Bitcoin recently declined to about $85,000, reflecting broader market downturn amid economic uncertainty.
  • Investors are increasingly moving toward safe assets like Gold and silver amid the crypto market decline.

Paul Atkins, Chair of the U.S. Securities and Exchange Commission (SEC), spoke at the SEC Crypto Task Force Roundtable on financial surveillance and privacy concerns related to cryptocurrencies. He warned that if cryptocurrency development is not carefully managed, it could evolve into the most powerful financial surveillance architecture ever created. Atkins highlighted the importance of privacy-preserving technologies such as zero-knowledge proofs, which allow verification of information without revealing the data itself, as tools to protect user freedoms while enabling regulatory compliance.

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The SEC’s position on cryptocurrencies has notably shifted since the beginning of the Trump administration. Previously, under Chair Gary Gensler, the SEC was perceived as restrictive toward crypto. With Atkins’ appointment, there has been a pronounced pro-crypto approach, influenced by President Donald Trump‘s support for the industry and the Trump family’s involvement in cryptocurrency ventures. This policy stance is expected to continue while the current administration remains in office.

At the same time as Atkins’ remarks, the cryptocurrency market experienced a sharp downturn. Bitcoin dropped to around $85,000, pulling many other digital assets lower. According to CoinGecko’s Bitcoin data, Bitcoin declined 3.9% in the past 24 hours, 4.2% over the last week, and by over 10% in the last month, with a total drop of nearly 18% since December 2024.

This market decline is linked to ongoing macroeconomic uncertainty, which typically drives investors away from high-risk assets such as cryptocurrencies. Instead, many are reallocating funds toward traditional safe havens like gold and silver. Silver recently reached a new all-time high, signaling a cautious approach among market participants.

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