Regulators aren't actually hostile to privacy itself—what they're fundamentally opposed to is opacity. Financial systems need confidentiality to protect participants, sure, but they equally demand accountability and traceability when needed. It's the core tension in modern finance.

Some blockchain solutions are now tackling this head-on with selective disclosure mechanisms. The idea: keep transaction details between parties private by default, yet enable regulatory inspections without compromising the entire system. Think of it as confidentiality by design, but with an audit trail for authorities when required.

This kind of approach could be what bridges the gap between privacy advocates and compliance frameworks—giving both sides what they actually need instead of forcing compromise.