Washington D.C. – U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce delivered a significant address on August 4, 2025, at the Science of Blockchain Conference, emphasizing the critical importance of financial privacy in the digital era. Titled “Peanut Butter & Watermelon: Financial Privacy in the Digital Age,” her speech highlighted the need for modernizing regulatory frameworks to protect individual liberty amidst technological advancements. As stated in her tweet, Peirce shared "Some thoughts on peanut butter, watermelon, and the importance of financial privacy."
Peirce, often referred to as "Crypto Mom" for her pro-innovation stance, utilized a personal anecdote about her grandfather's unconventional method of eating watermelon with peanut butter to illustrate the concept of disintermediation. She drew a parallel between the evolution of telephony, which removed human operators and increased privacy, and the potential of blockchain technology to reduce reliance on intermediaries in financial transactions. This analogy underscored her argument for individuals to self-custody their crypto assets without mandatory third-party involvement.
The Commissioner criticized the current financial surveillance regime, including the Bank Secrecy Act and the third-party doctrine, as overly invasive and out of step with modern technology. She argued that the government should "guard zealously" the ability of Americans to use privacy-enhancing tools like encrypted networks and cryptographic protocols. Peirce's remarks signal a potential shift from an enforcement-first regulatory approach to one that prioritizes rule-based clarity and innovation-friendly frameworks.
Her speech has garnered significant praise from within the cryptocurrency industry, with leaders like Coinbase's Chief Legal Officer Paul Grewal commending her for "turning the page from Gary Gensler’s misguided campaign of regulation by enforcement." Peter Van Valkenburgh, executive director at CoinCenter, described it as one of the clearest defenses of financial privacy in the context of crypto and new technologies. Peirce's advocacy suggests a growing consensus within federal agencies regarding the permanence of digital assets and the necessity of clear, supportive regulatory environments.