Peirce Calls for Reduced Customer Data Amid Stablecoin Regulation Push

SEC Commissioner Hester Peirce recently argued that financial institutions should reduce the accumulation of customer data and adopt reusable digital credentials. This stance is gaining weight as Washington moves forward with a new stablecoin regulation regime.

According to Peirce, technology already exists to prove customers' attributes without each company having to collect the same documents and information again. She highlighted alternatives that confirm facts such as age, citizenship, or presence on sanctions lists while minimizing personal data exposure.

The debate follows recent security incidents at financial platforms. Coinbase reported that 69,461 customers were affected after hackers obtained internal system data, including names, addresses, phone numbers, email addresses, official ID images, balances, and transaction history. Similarly, Revolut disclosed customer data in response to an unauthorized party's request, which included identity, contact details, and copies of passports and driver's licenses.

Peirce clarified that her remarks represent her personal views and not those of the SEC. Coinbase CEO Brian Armstrong used the episode as an argument against retaining a large amount of customer information.