SEC’s Peirce Backs Zero-Knowledge Proofs to Transform KYC and Protect User Privacy

SEC Commissioner Hester Peirce has suggested that United States regulators should examine zero-knowledge proofs and digital credentials to the extent that they can potentially cut down on the amount of KYC and AML data collected.

At the SIFMA 2026 Digital Assets Conference in New York on September 23, Peirce said banks regularly collect large amounts of identity and transaction data to comply with legislation.

She explained that this data gathering across institutions leads to repositories of sensitive data. These views are her own and not the views of the SEC.

The proposal for attribute-based credentials would allow, for example, a person to show that they are above a certain age, that they are a citizen of a particular country, that they are an accredited investor, or that they have passed through sanctions screening.