US Treasury and the Working Group

The regime itself mandates, pilots or funds privacy-preserving technology.

What US Treasury and the Working Group actually says

The most significant shift in this section, and the one most easily overstated. Official US government documents now treat privacy-preserving technology as part of the compliance toolkit rather than an obstacle to it. The 2025 Working Group report prioritises privacy and civil liberties, encourages privacy-preserving digital identity for customer verification, and concedes the technical and legal difficulty of enforcing obligations on privacy-enhancing protocols. Treasury's March 2026 report to Congress goes further, describing zero-knowledge credentials as a way to streamline compliance without over-collecting, and commits to issuing guidance on verifiable credentials. Read it as direction of travel and not as permission: every pro-privacy statement sits alongside an intact anti-money-laundering obligation, and the guidance has not been published.

What this means for confidential transactions

Bubble is built for exactly this shape of obligation: amounts and balances live on chain as ciphertexts, computation happens without decryption, and the only disclosure path is an on-chain access list through which an authorized party - an auditor, a supervisor, a counterparty - can request scoped decryption. That is confidentiality from the public, not from the regulator.