Privacy in the Cryptocurrency Sector
The cryptocurrency sector’s focus on privacy is once again in the spotlight as the U.S. Securities and Exchange Commission (SEC) prepares to host a roundtable discussion on December 15. This event will bring together cryptocurrency executives and SEC representatives to address the pressing issues of privacy and financial surveillance, although it’s important to note that the meeting will not involve formal policy recommendations.
Recent Legal Developments
Recent legal developments have intensified the conversation around privacy, including the trial verdict of Tornado Cash developer Roman Storm this past June and the subsequent sentencing of a developer associated with Samourai Wallet in November. Both cases have raised alarms within the crypto community, highlighting the precarious situation for privacy-centric technology in the United States.
Naomi Brockwell, founder of the Ludlow Institute, emphasized the dangers of diminished privacy, suggesting that authoritarian regimes flourish when individual privacy vanishes. “When those in authority show hostility towards privacy safeguards, it raises significant concerns,” she remarked.
The Cypherpunk Origins
The renewed emphasis on privacy in cryptocurrency harkens back to its cypherpunk origins, where the fundamental goal was to create secure communication in adversarial environments. Legal experts are wary of the precedents set by recent court outcomes, asserting that these cases intend to intimidate developers from creating tools that prioritize user privacy.
In this vein, crypto advocate Lola Leetz articulated a thought-provoking comparison by questioning whether automobile manufacturers should be held liable for how individuals use their cars in criminal activities. “Creators shouldn’t be punished for the actions of others using their innovations,” Leetz argued.
Government Stance on Open-Source Development
In a somewhat contrasting tone, Matthew Galeotti, the acting assistant attorney general of the U.S. Department of Justice’s criminal division, declared in August that the DOJ would refrain from prosecuting open-source software developers merely for writing code without malicious intent. He further clarified that the DOJ does not aim to use indictments as a means of law-making, assuring developers that they should not fear criminal prosecution for their innovations.
This statement from Galeotti may provide a measure of reassurance to those in the crypto community concerned about the implications of recent legal judgments on the future of privacy tools in the cryptocurrency landscape.
