When the Tornado Cash trial is near its conclusion, SEC Commissioner Peirce delivered a speech defending privacy in cryptocurrency. She criticized the approach of federal regulators and defended money mixing technologies as beneficial technologies.
Currently, this statement will not affect Roman Storm's trial. However, it emphasizes that privacy in cryptocurrency remains popular, even within federal regulatory agencies. This could help prevent future crackdowns.
Tornado Cash, Cryptocurrency Privacy, and You
Privacy in cryptocurrency is a hot topic as the Tornado Cash trial nears its end. Privacy has played a crucial role in the defense arguments so far, with conflicting federal priorities potentially hindering the DOJ's case.
Just yesterday, comments from another important US regulatory agency highlighted internal contradictions:
"When laws do not protect us, by design or omission, technology can. Encrypted networks and cryptographic protocols are such tools. Private pools, mixing technologies... and other new technologies [can] play a role in protecting the privacy of Americans, [but] the government must jealously protect Americans' ability to use them freely," Hester Peirce stated.
These comments came from a speech at UC Berkeley by Hester "Crypto Mom" Peirce, one of the most crypto-supportive SEC commissioners.
In her speech, she directly called on federal regulators to protect digital privacy, not suppress it, and the community noticed her references to important cypherpunk texts.
Federal Agencies' Battle Against Privacy
It's hard to ignore the connection to Roman Storm's case. The DOJ argued in court that Tornado Cash is responsible for preventing criminal activity, even if it violates the company's core principles.
Not only does Storm have no direct links to any hackers; creating a decentralized tool is considered criminal in the Department's eyes.
Unfortunately, the DOJ is not alone in this view. OFAC, under the Treasury Department's supervision, has sanctioned several cryptocurrency mixing tools.
If Tornado Cash is found guilty, OFAC's sanctions could set the foundation for future prosecutions. Just yesterday, FinCEN issued a notice strongly criticizing cryptocurrency ATMs, which have already been cracked down on globally.
SEC's Opposition
Peirce said that "the hammer has become the tool of choice for overseeing financial crime," and her meaning is clear in this context. Although her speech did not directly mention Tornado Cash, the case is part of a broader attack on privacy in cryptocurrency. That's why opposing views within the government are so important.
Throughout Roman Storm's trial, DOJ prosecutors have continuously attempted to discredit or obstruct Tornado Cash's witnesses. However, cryptocurrency privacy still has supporters even within federal financial regulatory agencies. Sympathy with cryptocurrency's fundamental principles is not a fringe view in 2025.
All of that said, Peirce's comments will not directly impact the Tornado Cash trial. They do not even represent the SEC's official policy; they are merely her personal opinion.
However, cryptocurrency regulation in the US is in a volatile phase. If Roman Storm is found not guilty, this could completely reduce federal attacks on privacy.
