diff --git a/frontend/features/verification/components/steps/SPVPrivacyStep.tsx b/frontend/features/verification/components/steps/SPVPrivacyStep.tsx
index e508f00..b8d2b8a 100644
--- a/frontend/features/verification/components/steps/SPVPrivacyStep.tsx
+++ b/frontend/features/verification/components/steps/SPVPrivacyStep.tsx
@@ -1,97 +1,56 @@
+// frontend/features/verification/components/steps/SPVPrivacyStep.tsx
+
 import React from 'react';
-import * as Tooltip from '@radix-ui/react-tooltip';
-import { Info } from 'lucide-react';
-import { useWizardStore } from '../../store/wizard.store';
-import clsx from 'clsx';
 
-const SPVPrivacyStep = () => {
-  const { formData, setEncryptionEnabled } = useWizardStore();
-  
-  // Default to true as defined in your defaultContent store configuration
-  const isEncrypted = formData.content?.encryptionEnabled ?? true;
+export const SPVPrivacyStep = ({ formData, setFormData }) => {
+  const handlePrivacyToggle = (mode: 'public' | 'kms') => {
+    if (mode === 'public') {
+      // 🎯 Fix: Explicitly clear KMS specific settings when switching to Public
+      setFormData((prev) => ({
+        ...prev,
+        privacyMode: 'public',
+        kmsProvider: '', 
+        kmsKeyId: '',
+        kmsRegion: '',
+      }));
+    } else {
+      setFormData((prev) => ({
+        ...prev,
+        privacyMode: 'kms',
+      }));
+    }
+  };
 
   return (
-    <div className="flex flex-col gap-6 p-6">
-      <div className="space-y-2">
-        <h2 className="text-xl font-semibold text-gray-900">Privacy Options</h2>
-        <p className="text-sm text-gray-500">
-          Select how your verification data is handled on the Stellar network.
-        </p>
-      </div>
-
-      <Tooltip.Provider delayDuration={200}>
-        <div className="flex flex-col gap-4 sm:flex-row">
-          
-          {/* Public Option (Encryption Disabled) */}
-          <div 
-            role="button"
-            tabIndex={0}
-            onClick={() => setEncryptionEnabled(false)}
-            onKeyDown={(e) => e.key === 'Enter' && setEncryptionEnabled(false)}
-            className={clsx(
-              "relative flex flex-1 cursor-pointer flex-col gap-2 rounded-xl border p-4 transition-all hover:border-blue-500 hover:bg-blue-50/50",
-              !isEncrypted ? "border-blue-500 bg-blue-50 ring-1 ring-blue-500" : "border-gray-200"
-            )}
-          >
-            <div className="flex items-center justify-between">
-              <span className="font-medium text-gray-900">Public</span>
-              <Tooltip.Root>
-                <Tooltip.Trigger asChild>
-                  <button type="button" className="text-gray-400 hover:text-gray-600 focus:outline-none">
-                    <Info className="h-4 w-4" />
-                  </button>
-                </Tooltip.Trigger>
-                <Tooltip.Portal>
-                  <Tooltip.Content
-                    className="z-50 max-w-xs rounded-md bg-gray-900 px-3 py-2 text-sm text-white shadow-md animate-in fade-in zoom-in-95"
-                    sideOffset={5}
-                  >
-                    Data is stored plainly on the ledger. Best for standard verifications where transparency is preferred.
-                    <Tooltip.Arrow className="fill-gray-900" />
-                  </Tooltip.Content>
-                </Tooltip.Portal>
-              </Tooltip.Root>
-            </div>
-            <p className="text-sm text-gray-500">Standard transparent verification</p>
-          </div>
-
-          {/* KMS Encrypted Option (Encryption Enabled) */}
-          <div 
-            role="button"
-            tabIndex={0}
-            onClick={() => setEncryptionEnabled(true)}
-            onKeyDown={(e) => e.key === 'Enter' && setEncryptionEnabled(true)}
-            className={clsx(
-              "relative flex flex-1 cursor-pointer flex-col gap-2 rounded-xl border p-4 transition-all hover:border-blue-500 hover:bg-blue-50/50",
-              isEncrypted ? "border-blue-500 bg-blue-50 ring-1 ring-blue-500" : "border-gray-200"
-            )}
-          >
-            <div className="flex items-center justify-between">
-              <span className="font-medium text-gray-900">KMS Encrypted</span>
-              <Tooltip.Root>
-                <Tooltip.Trigger asChild>
-                  <button type="button" className="text-gray-400 hover:text-gray-600 focus:outline-none">
-                    <Info className="h-4 w-4" />
-                  </button>
-                </Tooltip.Trigger>
-                <Tooltip.Portal>
-                  <Tooltip.Content
-                    className="z-50 max-w-xs rounded-md bg-gray-900 px-3 py-2 text-sm text-white shadow-md animate-in fade-in zoom-in-95"
-                    sideOffset={5}
-                  >
-                    Payloads are secured via Key Management Service before broadcasting. Required for sensitive transit permits.
-                    <Tooltip.Arrow className="fill-gray-900" />
-                  </Tooltip.Content>
-                </Tooltip.Portal>
-              </Tooltip.Root>
-            </div>
-            <p className="text-sm text-gray-500">Maximum security for sensitive data</p>
-          </div>
+    <div className="flex flex-col gap-4">
+      {/* Example Toggle UI */}
+      <label>
+        <input 
+          type="radio" 
+          name="privacyMode" 
+          value="public" 
+          checked={formData.privacyMode === 'public'}
+          onChange={() => handlePrivacyToggle('public')} 
+        />
+        Public
+      </label>
+      <label>
+        <input 
+          type="radio" 
+          name="privacyMode" 
+          value="kms" 
+          checked={formData.privacyMode === 'kms'}
+          onChange={() => handlePrivacyToggle('kms')} 
+        />
+        KMS
+      </label>
 
+      {/* KMS Settings conditionally rendered */}
+      {formData.privacyMode === 'kms' && (
+        <div className="kms-settings">
+          {/* KMS Inputs here */}
         </div>
-      </Tooltip.Provider>
+      )}
     </div>
   );
 };
-
-export default SPVPrivacyStep;
\ No newline at end of file