Hester Peirce defends crypto self-custody

Commissioner of the United States Securities and Exchange Commission (SEC) Hester Peirce has reaffirmed the need for the right to crypto self-custody and privacy in financial transactions. Peirce, who is also the head of the SEC’s Crypto Task Force, has always been at the forefront of financial freedom.

The SEC Commissioner made these known during an interview on The Roll Up podcast. “I’m a freedom maximalist,” Peirce said, noting that self-custody of digital assets is a fundamental human right. “Why should I have to be forced to go through someone else to hold my assets? It baffles me that in this country, which is so premised on freedom, that would even be an issue — of course, people can hold their own assets,” the SEC Commissioner added.

SEC Commissioner reiterates stance on crypto self-custody

During the interview, Peirce added that online financial privacy should be the standard. “It has become the presumption that if you want to keep your transactions private, you’re doing something wrong, but it should be exactly the opposite presumption,” she said. Her comments are also coming after news that the Digital Asset Market Structure Clarity Act, a crypto market structure bill that includes several provisions, will be delayed until 2026.

The news was shared on blogging platform X (formerly Twitter) by Senator Tim Scott. “Our crypto market structure work is about empowering the American people – including single moms like the one who raised me. We’re aiming to markup bipartisan legislation next month and get it to President Trump’s desk to keep America economically dominant for decades,” he said. The bill is expected to include asset taxonomy, anti-money laundering regulations, and provisions for self-custody.

Over the past few months, many large Bitcoin whales and long-term holders have been shifting how they hold assets, pivoting from self-custody to ETFs to reap the tax benefits and hassle-free management of owning digital assets in an investment vehicle. The development was brought to the mainstream media by Martin Hiesbock, head of blockchain and crypto research at financial services platform Uphold.

Large Bitcoin holders shift holdings to ETFs

Hiesbock claimed that the movement of large amounts of Bitcoin into ETFs marks the first time in more than 15 years that there has been a significant decline in the number of self-custodied BTC. “Another nail in the coffin of the original crypto spirit,” he wrote. He added that the “not your keys, not your coins” ethos that has always accompanied digital assets has given rise to a more traditional approach that centers on compliance and financial optimization.

“The shift is driven by the convenience and significant tax benefits offered by ETFs, as well as the ability for major investors to manage their wealth through existing financial advisers and access broader investment/lending services,” Hiesboeck said. Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has already seen over $3 billion worth of Bitcoin from whales, according to Robbie Mitchnick, head of digital assets at BlackRock.

In addition, popular Bitcoin analyst and investor PlanB announced that he was transferring his Bitcoin to ETFs to alleviate the hassle of private key management. PlanB, the developer of the BTC stock-to-flow model, announced in February, noting that he made the decision so he could manage his holdings more like equities and bonds, without the complexities of self-custody. “I guess I am not a maxi anymore,” PlanB said in an X post at the time.

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