Crypto’s Latest Privacy Battle
The SEC's Consolidated Audit Trail (CAT) is now fully operational, requiring U.S. financial entities to collect and report extensive trade and customer information. This includes personal data of retail brokerage customers and may also impact participants in the digital asset economy. The CAT poses significant privacy concerns, as it grants access to a vast amount of personal financial and trading data without warrant or reasonable suspicion of wrongdoing. Former Attorney General William Barr and SEC Commissioner Hester Peirce have expressed concerns over potential constitutional violations and unchecked surveillance implications. The database also presents a security risk, attracting hackers. The SEC has been sued twice over CAT's implementation, highlighting the need for judicial intervention to curb government overreach. The crypto community is urged to voice opposition to CAT as it poses a threat to Americans' constitutional rights.
