On June 9, 2025, community member Eugenio Reggianini proposed a modular architecture for Ethereum aimed at enhancing data management and privacy in compliance with the EU's GDPR.

This proposal specifically addresses compliance and privacy concerns that have been barriers to institutional adoption of Ethereum, particularly for traditional finance players.

Notably, the proposal is technically sound and seeks to achieve GDPR compatibility without compromising Ethereum's decentralized nature.

Adi Ben-Ari, CEO of Applied Blockchain, believes this initiative could facilitate greater institutional engagement with public chains while ensuring privacy compliance.

James Wo, CEO of DFG, suggests that by effectively addressing EU data compliance, the proposal could attract investors and promote mainstream adoption of Ethereum.

However, Ben-Ari also highlights potential trade-offs associated with privacy-enhancing technologies (PETs), such as increased computational demands and complexity for developers, especially in financial applications.

The proposal emphasizes the importance of collaborative governance and the widespread adoption of PETs to ensure compliance with GDPR.

Reggianini's approach aims to decentralize data control by utilizing off-chain storage and cryptographic methods, thereby limiting GDPR responsibilities to a smaller group of entities.

Despite the challenges, achieving regulatory compliance is seen as crucial for Ethereum's long-term legitimacy and the adoption of tokenized real-world assets.

The full implementation of this proposal will depend on integrating privacy-enhancing technologies and educating users about data privacy.

As a leader in blockchain innovation and community building, Ethereum continues to evolve through such community-driven proposals.