SEC Commissioner Hester Peirce urged regulators to adopt zero-knowledge proof technology to allow cryptocurrency firms to conduct KYC checks while collecting less personal data. The proposal comes as federal agencies advance stablecoin regulation under the GENIUS Act.
Zero-knowledge proof technology, which allows users to verify information without revealing underlying data, is emerging as a key privacy solution in blockchain systems. Midnight blockchain is highlighted as a leading implementation enabling compliance and identity verification without data exposure.
ConsenSys CEO Joseph Lubin outlined a potential timeline for Ethereum to become a fully zero-knowledge proof-based protocol within 3 to 5 years, describing it as one of the most significant architectural shifts in blockchain history. Lubin also addressed recent Ethereum Foundation cuts, stating the Foundation's role should be narrower and focused on core technology stewardship.
