Regulators clash with privacy technology over the future of cryptocurrencies

Coinbase Chief Legal Officer Paul Grewal stressed that Zero Knowledge Proof (ZKP) plays an increasingly important role in modernizing financial compliance, and believes the Bank Secrecy Act is outdated for digital assets. ZKP enables verifiable transactions without exposing sensitive data, thereby improving privacy and efficiency. By mid-2025, daily transaction volumes based on the ZKP will increase by 20% year-on-year, so the adoption of ZKP can boost institutional confidence and drive demand for privacy-focused assets such as ZEC, while benefiting a wider ecosystem like BTC and ETH through enhanced regulatory compatibility.