The crypto space is about to witness a pivotal conversation. On December 15, the US SEC will hold a cryptocurrency roundtable, with the core topic focusing on “the balance between privacy protection and financial regulation.” The lineup for this meeting is quite formidable—Zcash founder Zooko, Aleo CEO Koh, and several experts and institutional representatives from the privacy technology sector will all be in attendance.

Why is this meeting worth paying attention to? Looking back over the past two years, with the arrest of Tornado Cash developers and regulatory scrutiny of the Samourai wallet, the privacy sector has been under constant pressure. Regulators are concerned that anonymous transactions could become tools for money laundering, yet users’ demand for on-chain privacy has never diminished. Now, with the SEC proactively establishing a communication platform, it is to some extent acknowledging the legitimacy of privacy technologies—the question is whether both sides can find a space for coexistence within a compliance framework.

From a market perspective, this meeting could lead to a polarized outcome.

In the short term, the privacy coin sector (such as ZEC, XMR, AZERO) will likely see capital inflows ahead of the meeting, given the prevailing expectations. However, it’s important to emphasize that this surge is more sentiment-driven rather than a result of fundamental improvements.

The long-term impact is what really matters. If the meeting leads to some form of regulatory compromise—such as the introduction of auditable privacy technology standards—the privacy coin sector could reach a turning point toward compliance. But if negotiations break down and regulation tightens further, the entire sector will need to reassess its viability.

Advice on how to operate? Don’t go all-in, but it’s reasonable to participate with a small position as a speculative bet. Waiting for the outcome of the meeting on the 15th before making any major decisions is far more rational than blindly taking heavy positions now. After all, this isn’t just about market speculation—it’s a policy battle that will shape the direction of privacy technology for the next decade.

Keep a close eye on December 15 to see how regulation and innovation play out.