Grayscale: Privacy tokens like ZEC enable compliance and privacy to coexist, driving the conversion of the ZEC Trust into an ETF.

At the Consensus conference in Hong Kong, Grayscale's Chief Legal Officer, Craig Salm, discussed how privacy-preserving assets like Zcash (ZEC) can achieve selective disclosure while maintaining confidentiality to meet tax and regulatory obligations. He believes innovation and compliance can coexist. Craig Salm stated, "If you have a business need and want to pay a large sum to a supplier, but don't want other companies or competitors to see it, which could expose your business information, you'd want the transaction to remain private. Paying with Bitcoin doesn't necessarily achieve this because the blockchain is transparent. We've seen this on platforms like X, with dedicated accounts tracking on-chain transactions. So you can imagine the scenarios where this need exists. The most interesting aspect of privacy-preserving tokens like Zcash is 'selective disclosure.' You can selectively disclose information to a specific entity, such as proving to the IRS that you've paid your taxes correctly, while maintaining privacy in everyday business or personal transactions. So we think this is a very interesting currency. We already have a sizable Zcash trust, and we're working on converting it into an ETF, just like we've done for several other products."