As the Tornado Cash trial nears its conclusion, SEC Commissioner Peirce gave a speech defending crypto privacy. She criticized federal regulators’ approach and defended crypto mixers as a beneficial technology.
For now, this statement won’t impact Roman Storm’s trial. Still, it emphasizes that crypto privacy is still popular, even within federal regulators. This could help prevent future crackdowns.
Tornado Cash, Crypto Privacy, and You
Crypto privacy is all over the news right now, as the Tornado Cash trial is nearing its end. Privacy has played a key role in the defense’s arguments so far, as conflicted federal priorities arguably hampered the DOJ’s case.
Just yesterday, comments from another key US regulator highlighted the internal conflict:
“Where, by design or deficiency, the law will not protect us, technology might. Encrypted networks and cryptographic protocols are such tools. Privacy pools, mixers…and other new technologies [could] play a role in protecting Americans’ privacy, [but the] government must guard jealously the ability of Americans to use them freely,” Hester Peirce claimed.
These comments came from a speech delivered in UC Berkeley by Hester “Crypto Mom” Peirce, one of the SEC’s most pro-crypto Commissioners.
In her speech, she directly called on federal regulators to defend digital privacy, not crack down on it, and the community noticed her references to key cypherpunk texts.
Federal Regulators’ War on Privacy
It’s hard to ignore the connection to Roman Storm’s case. The DOJ argued in court that Tornado Cash was responsible for preventing criminal activity, even if it violated the firm’s core ethos.
It wasn’t sufficient that Storm had no direct connection to any hackers; creating a decentralized tool constitutes a crime in the Department’s eyes.
Unfortunately, the DOJ isn’t alone in this outlook. OFAC, under the Treasury’s purview, sanctioned several other crypto privacy tumblers.
If Tornado Cash is found criminally liable, OFAC sanctions could lay the groundwork for future cases. Just yesterday, FinCEN issued a memo harshly criticizing crypto ATMs, which are already subject to a global crackdown.
The SEC Pushes Back
Peirce said that “the sledgehammer has become the tool of choice for monitoring for financial crimes,” and it’s clear what she means in this light. Although her speech didn’t directly call attention to Tornado Cash, the case is part of a broad attack on crypto privacy. That’s why opposing perspectives within the government are so important.
Throughout Roman Storm’s trial, DOJ prosecutors persistently attempted to discredit or hamper Tornado Cash’s witnesses. Nonetheless, crypto privacy has its advocates even within federal finance regulators. Sympathy for crypto’s foundational tenets is not a fringe position in 2025.
All that is to say, Peirce’s comments won’t directly impact the Tornado Cash trial. They don’t even represent official SEC policy; just her own opinion.
Still, US crypto regulation is in a liquid moment right now. If Roman Storm is found innocent, it could totally blunt federal offensives against privacy.
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