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SEC reviews how crypto surveillance tools balance fraud detection with user data privacy

Roundtable gathers regulators, developers, and researchers to assess data collection limits

Public input and CFTC coordination aim to align crypto privacy oversight standards

The U.S. Securities and Exchange Commission's Crypto Task Force is holding a public roundtable on December 15, 2025, bringing renewed attention to how financial surveillance intersects with data privacy in digital asset markets. The session, scheduled from 1:00 p.m. to 5:00 p.m. ET, centers on how crypto-related firms collect, retain, and protect user information while meeting regulatory obligations.

The event was initially planned for October 17 but was postponed due to a federal government shutdown. Following the resumption of government operations, the SEC rescheduled the forum and released its agenda and confirmed participants on December 5. The agency has framed the meeting as part of its ongoing review of oversight practices tied to emerging crypto market structures.

According to the SEC, the roundtable will feature two panels dedicated to privacy risks within crypto markets. Participants include privacy researchers, federal regulators, blockchain developers, and executives from digital asset firms. The discussion is expected to focus on how existing surveillance mechanisms operate and whether they align with established data protection standards.

Surveillance Tools and Data Retention in Focus

A central theme of the roundtable is the use of monitoring systems deployed by crypto exchanges and service providers. These systems are commonly used to identify fraud and activity linked to illicit finance. Regulators are examining how much user data these tools collect, how long that data is stored, and what internal controls are in place to safeguard it.

The SEC has indicated that it is assessing whether current regulatory tools can meet compliance and enforcement requirements without extending beyond their intended scope. Data governance, cybersecurity practices, and limitations on access to sensitive information are expected to be part of the discussion.

Public Comments and Interagency Coordination

Public participation is built into the roundtable format, with the SEC set to accept comments during the session. In addition, the agency has signaled coordination with other regulators, including the Commodity Futures Trading Commission, to support more consistent oversight approaches across U.S. crypto markets.

The SEC has previously linked weaknesses in data protection to reduced confidence in digital asset platforms. Officials from the Crypto Task Force have said the roundtable is intended to gather direct input from industry and technical experts on operational challenges related to privacy and surveillance.