On December 15, the US SEC convened a roundtable discussion on privacy technology. Those at the table were anything but ordinary: Zooko, founder of Zcash and a veteran in the privacy coin space; Koh, CEO of Aleo and a top expert in zero-knowledge proof technology; a policy analyst from the American Civil Liberties Union; the CEO of the Blockchain Association; and representatives from various privacy tech companies. The lineup was truly impressive.

The core conflict of the meeting was clear: users want transactional privacy, while regulators worry that privacy tools could become a haven for money laundering. If this dilemma can't be solved, the ceiling for the entire privacy sector remains firmly in place.

Looking back, with Tornado Cash developers arrested and the Samourai Wallet team prosecuted, the privacy sector has always survived in the cracks. Now, with the SEC proactively reaching out, the signal is intriguing—it may indicate an awareness that the demand for privacy cannot be completely suppressed, but they’re also not ready to let go entirely and are seeking some kind of balance through dialogue.

From an investment perspective, such events often spark short-term interest in privacy coins. Assets like $ZEC, $XMR, and $AZERO could see volatility around the time of the meeting. But the long-term outlook depends more on the outcome of these negotiations: if regulators are willing to leave room for privacy technology, the sector may see a turnaround; but if talks break down, it could mean another harsh winter.

In a sense, this meeting is a test of the crypto industry’s move from the margins to the mainstream. Regulators are starting to realize that crackdown alone won’t solve the problem. What we can do is closely follow the progress of the meeting and see whether the SEC truly wants to collaborate and build rules together, or if it’s just another way to tighten control. It’s okay to allocate a small amount to privacy coin assets, but don’t go all in—wait until the outcome is clear before making big decisions.

The December 15 dialogue is not just a game between regulation and innovation; it also concerns the financial freedom of every ordinary user.