SEC Commissioner Hester Peirce urged regulators to use zero-knowledge proofs and attribute-based credentials to reduce the personal data collected for know-your-customer and anti-money-laundering compliance. In September 23 remarks at SIFMA's 2026 Digital Assets Conference in New York, Peirce said cryptographic proofs could confirm facts such as age, citizenship, accredited-investor status or sanctions-screening status without disclosing the underlying records. She stressed that the comments reflected her own views and did not alter existing KYC or AML obligations. The SEC's Crypto Task Force has discussed privacy-preserving identity technology with Aztec Laboratorium Limited, but the SEC has not accepted its claims or approved cryptographic proofs as substitutes for customer-identification documentation. Peirce also discussed the SEC's five-year Innovation Exemption, which conditionally allows qualifying tokenized securities to trade through permissioned automated market makers. SIFMA said parallel tokenized versions of listed securities could confuse investors and fragment prices or liquidity, while the SEC continues to seek public comments on the temporary framework.