Financial privacy rules urgently needed, expert argues

The U.S. financial sector requires clearer privacy regulations, despite recent inter-agency coordination on crypto assets. Divergent rules from agencies like the Treasury and DOJ create uncertainty for businesses and consumers, as seen with conflicting guidance on privacy software. The current system, rooted in the Bank Secrecy Act, leads to excessive data collection and privacy deadweight loss, stifling innovation and economic activity. Advanced technologies like zero-knowledge proofs offer solutions for private transactions on public blockchains, but a comprehensive digital-era privacy framework is essential for modern financial systems to function effectively and fairly.