The Ethereum Foundation has announced a major shift in its privacy approach, launching the “Privacy Stewards of Ethereum” initiative on Friday, September 13, 2025. This new program replaces the previous “Privacy & Scaling Explorations” team and focuses on solving real privacy problems rather than just researching new technology.
The announcement comes as governments worldwide increase their oversight of cryptocurrency transactions. The U.S. Treasury Department, led by Secretary Scott Bessent, is exploring proposals to add government identity checks to smart contracts, creating pushback from the crypto community.
Three-Track Privacy System
The new roadmap centers on three main areas that address different privacy needs on Ethereum.
Private Writes focuses on making private transactions as easy and cheap as regular ones. The team is developing PlasmaFold, an experimental Layer 2 network designed for private transfers. This system uses a unique approach where servers handle block proofs while users keep balance proofs on their own devices, allowing instant exits without complex procedures.
Private Reads tackles the problem of data leaks when users interact with Ethereum. Normal RPC (Remote Procedure Call) services can expose personal information like IP addresses and account interests. The Privacy Stewards team has formed a working group to evaluate solutions that protect this sensitive data.
Private Proving aims to make zero-knowledge proofs easier and cheaper to generate on everyday devices. This “prove anywhere” approach would allow users to create privacy proofs without needing powerful computers or relying on third-party services.
Immediate Goals and Timeline
The Privacy Stewards team has set clear targets for the next 3-6 months. They plan to showcase a PlasmaFold proof-of-concept at Devconnect in Argentina on November 17, 2025.
Source: @ethereum-magicians.org
Other near-term objectives include publishing a “State of Private Voting 2025” report and developing confidential DeFi protocols. These DeFi solutions aim to provide privacy while meeting compliance requirements for institutional clients.
The team also plans to implement privacy-preserving wallet features and explore private identity solutions using zero-knowledge proofs. These proofs allow verification of information without revealing the actual data.
Technical Innovation and Leadership
The roadmap draws inspiration from Ethereum co-founder Vitalik Buterin and incorporates ideas from the Silviculture Society, the PSE team, and independent researcher Oskar Thorén. This collaborative approach reflects the Foundation’s commitment to ecosystem-wide solutions rather than isolated projects.
Sam Richards, who leads the Privacy Stewards team, emphasized the urgency of the mission: “Ethereum deserves to become core infrastructure for global digital commerce, identity, collaboration, and the internet of value. But this potential is impossible without private data, transactions, and identity.”
The Foundation has set an ambitious goal to implement a native Layer 1 zkEVM (zero-knowledge Ethereum Virtual Machine) by the end of 2025. This integration would bring privacy features directly to Ethereum’s base layer.
Market Impact and Industry Response
Industry leaders have shown strong support for these privacy enhancements. Cathie Wood, founder of ARK Invest, publicly endorsed the initiative, highlighting its importance for Ethereum’s institutional market dominance.
The privacy roadmap could serve as a catalyst for Ethereum’s market performance, similar to how previous upgrades like Ethereum 2.0 drove price appreciation and institutional interest. By positioning itself as the leading privacy-preserving blockchain, Ethereum could capture significant market share as regulatory frameworks increasingly demand privacy-compliant solutions.
The announcement addresses growing concerns about digital financial surveillance as cryptocurrency gains mainstream adoption. Privacy has always been central to the cypherpunk philosophy that created cryptocurrencies, but government attention has intensified these concerns.
What This Means for Users
The Privacy Stewards initiative represents a fundamental shift from optional privacy features to making privacy the default state. Users would benefit from:
Private transfers that work as easily as regular transactions
Protected personal data when interacting with applications
Confidential voting in decentralized governance
Anonymous browsing of blockchain data
Secure identity verification without revealing personal details
The team expects these privacy improvements to make Ethereum more attractive to both individual users and institutions concerned about data protection and regulatory compliance.
Looking Forward
The Privacy Stewards initiative marks a crucial moment for Ethereum as it faces increasing regulatory scrutiny while trying to maintain its position as the leading smart contract platform. The success of this privacy roadmap could determine whether Ethereum becomes the foundation for global digital commerce or loses users to more privacy-focused alternatives.
The Foundation’s commitment to solving concrete privacy problems rather than just conducting research shows a mature approach to blockchain development. As governments worldwide grapple with cryptocurrency regulation, Ethereum’s proactive privacy measures could provide a template for balancing user protection with regulatory compliance.