The SEC defends self-custody as ETFs change Bitcoin ownership
15:05 ▪ 4 min read
Self-custody and financial privacy have once again become the center of the debate on cryptocurrencies in the United States after SEC Commissioner Hester Peirce reaffirmed that they are fundamental individual rights. Her statements come in a context of regulatory uncertainty, the rapid adoption of ETFs, and a renewed interest in the foundational principles of Bitcoin.
In Brief
SEC officials describe self-custody as a fundamental right, while Congress delays the bill on the key structure of the cryptocurrency market until 2026.
Many Bitcoin holders are migrating to ETFs, attracted by in-kind creations with tax advantages and ease of management.
The growing adoption of ETFs is fueling the debate, with some arguing that abandoning self-custody undermines the original framework of Bitcoin.
PlanB's transition to ETFs reinforces concerns about the increasing reliance on third-party custody services.
Peirce advocates for self-custody
Peirce, who also oversees the SEC's cryptocurrency working group, stated on the podcast The Rollup that direct ownership of assets should never be questioned in a country founded on individual freedom. She argued that self-custody is a fundamental human right and expressed her astonishment at the fact that Americans are being encouraged to turn to intermediaries to protect their assets.
She also believes that confidentiality should be the norm in online financial activity, not behavior considered suspicious.
Her comments come as the Digital Asset Market Structure Clarification Act faces new delays.
