The Bitcoin Policy Institute (BPI), Fedi, and Cornell University are embarking on a two-year research project examining American perceptions of financial privacy, the compromises that they might accept, and the influence of regulations on their behavior.

The initiative combines the expertise of a Bitcoin wallet company with that of an academic institution and a think tank, with the goal of linking the development, research, and governance of privacy tools.

According to Fedi and BPI, this research will integrate quantitative surveys with qualitative interviews to explore shifting attitudes toward financial privacy.

Cornell’s Brooks School Tech Policy Institute is partnering academically with Fedi providing insights on products and user behavior, while BPI concentrates on policy communications.

This two-year project will focus notably on how Americans view privacy in daily transactions and their trust in institutions, producing four reports every six months, with the initial one set to release in April 2026. The reports aim to contribute empirical data to policy discussions concerning the regulatory environment for developers.

Increasing Concerns Over Data Usage

Public anxiety regarding data usage is climbing. A 2023 Pew Research Center survey indicated that 71% of U.S. adults expressed varying degrees of concern about how the government utilizes the data it gathers, an increase from 64% in 2019. About two-thirds claimed little to no understanding of corporate handling of their personal data.

As a related note, governments worldwide are pursuing initiatives, including

• central bank digital currencies (CBDCs)
• digital identity frameworks
  that could enhance governmental oversight of payments and online activities, fueling an ongoing debate about the necessity to preserve, redesign, or limit financial privacy in this digital age.

Policy Environment and Privacy Tools

In the realm of cryptocurrency, the climate surrounding open-source and privacy-focused tools has intensified.

U.S. enforcement has pursued criminal charges against creators of non-custodial services like Samourai Wallet and Tornado Cash, claiming they operated unlicensed money-transmitting businesses and facilitated illicit fund transfers through their technologies.

These developers have encountered criminal proceedings, convictions, or ongoing legal repercussions.

In light of these developments, concerns have arisen that simply maintaining or publishing privacy-oriented code could be regarded as illegal, irrespective of whether the developers have control over user funds.

Legislative Developments Impacting DeFi Developers

Currently, the proposed crypto market structure bill in Washington is a significant focus for the future of developers and decentralized finance (DeFi).

Industry groups, such as the DeFi Education Fund, have urged lawmakers to implement protective measures for software developers and non-custodial infrastructures. They caution that ambiguous mandates could push developers overseas or compel them into conventional financial roles.

Jake Chervinsky, the chief legal officer at Variant, has positioned DeFi as a crucial issue in the market structure discussions, emphasizing the need to safeguard DeFi developers. He cautions that a lack of clarity could lead future regulators to threaten DeFi in the U.S.

Cointelegraph reached out to the Bitcoin Policy Institute for further comments but did not receive a response prior to publication.