Key Points
- US senators and intelligence agencies are reportedly not against privacy-focused crypto protocols, according to Railgun researcher Alan Scott Jr.
- Railgun, a privacy-focused protocol, uses smart contracts to ensure private transactions for DeFi users on the Ethereum blockchain and Layer-2 networks.
Alan Scott Jr, a researcher and advocate for Railgun, has recently stated that US senators and intelligence agencies do not object to privacy-focused crypto protocols. This statement was made following a major crackdown by US agencies on several privacy-oriented platforms and cryptocurrency mixers.
Scott shared his insights during a presentation at the ETH Global event in Sydney on May 2. He revealed that he had recent discussions with senators and the FBI in Washington D.C. and found no evidence of a campaign against cryptocurrency on Capitol Hill. He also noted that many in the higher administration are intelligent, have good intentions, and aim to protect people.
About Railgun Protocol
Railgun, a protocol focused on privacy, uses smart contracts to secure private transactions for DeFi users on the Ethereum blockchain and Layer-2 networks like Arbitrum and Polygon.
Nonetheless, Railgun is often viewed similarly to other crypto privacy protocols like Tornado Cash. On April 17, an account identified as the official Railgun account denied allegations of being used by North Korea and other US-sanctioned entities to launder illicitly obtained cryptocurrency. This denial was in response to an FBI statement claiming that Railgun was used to launder over $60 million in Ethereum (ETH) during the 2022 Harmony Bridge exploit.
Railgun’s Defense
Railgun maintains that its zk-proof technology and “Private Proofs of Innocence” systems are effective deterrents against malicious actors using its protocol for illegal purposes. Scott stated that the FBI, being a large organization, is more concerned with bad actors committing financial crimes than with privacy protocols. He further explained that the FBI’s main concern is potential issues that could hinder their ability to catch bad actors.
US Politicians and Crypto Understanding
Scott also mentioned that he had discussions with several US regulators and prosecutors who showed a genuine interest in understanding the broader crypto market. He also noted that despite actions against developers of crypto mixers like Tornado Cash and Samourai Wallet, there was no widespread campaign against privacy protocols in the broader crypto space.
He emphasized that what Railgun is building is the disintermediation of finance, and that DeFi is a crucial and beautiful thing to do. He added that privacy is a key aspect of this, and that advocating for it and discussing privacy as an important thing is completely normal and actually quite mundane, as it’s already a part of traditional finance that exists today.
