PGPZ Weekly Policy Note | October 12, 2026 Financial privacy, digital cash technologies, and U.S. crypto policies emerged as this week’s top headlines. PGPZ’s analysis examines how technical advancements and political decisions impact the future of privacy-focused financial systems. Key Developments 1. BIS Research on Privacy in Digital Cash The Bank for International Settlements (BIS) published a report examining zero-knowledge proofs and privacy-preserving technologies as part of Phase Two of Project Aurum. The research aims to limit unnecessary exposure of identity and transaction data while verifying payment validity. However, it also highlights ongoing risks related to data breaches and system security. Zcash significance: The study provides a significant institutional reference demonstrating that financial privacy and verifiability can be achieved together. Zero-knowledge proofs and data minimization could strengthen the role of privacy technologies in security and compliance debates. 2. Committee Leadership Race in the U.S. Congress Representative Sean Casten’s bid to succeed Maxine Waters as the top Democrat on the Financial Services Committee has ignited internal party leadership discussions. Bill Foster is also reportedly under consideration. Casten’s past proposals include the Blockchain Integrity Act, which seeks to limit funds linked to crypto mixers, and the CODE Act, which addresses anti-money laundering and enforcement controls in DeFi. Zcash significance: A potential leadership shift could influence oversight and legislative priorities for digital assets. However, the race remains unresolved and does not imply immediate changes to existing regulations. 3. Crypto Policy Uncertainty at the White House The departure of Patrick Witt, Executive Director of the Digital Assets Advisory Council, has created uncertainty around the administration’s coordination of crypto policies. While the SEC, CFTC, and Treasury Department continue their work, the future of market-structure regulations such as the CLARITY Act remains contingent on congressional proceedings. Zcash significance: As exchange access and market regulation remain on the agenda, it is critical that financial privacy, data minimization, and protections for unregulated software developers are also considered. This development does not directly alter ZEC’s legal status at this time. Community Events from Washington On October 14, PGPZ and Project Glitch hosted the first Cyberpunk Policy Dinner, bringing together privacy advocates and financial tool developers to discuss privacy and the freedom to build these technologies. At the third annual DC Privacy Summit on October 15, topics included financial privacy, digital identity, artificial intelligence, and cryptography. These events helped forge connections between privacy technologies and the policy decisions shaping them. Overall Assessment This week’s developments underscore that financial privacy is both a technical and a regulatory-political issue. The BIS research highlights the potential of privacy technologies within institutional finance, while political developments in the U.S. keep uncertainties around the future of crypto policy in focus. Source: https://t.co/TWh5YTZ8vQ #Zcash #PGPZ #privacy #crypto #ZeroKnowledge