In a recent interview with journalist Madison Reidy, Michael Saylor, the CEO of MicroStrategy, stirred up considerable debate within the Bitcoin community with his comments on custody and regulation. Addressing the risks associated with sizable amounts of BTC being held by third-party custodians and major financial institutions, Saylor expressed skepticism towards self-custody and minimized concerns regarding potential seizure or confiscation.
Saylor suggested that holding BTC with regulated public entities like BlackRock, Fidelity, and JPMorgan Chase is safer than leaving it with unregulated private holders. He remarked, “I believe it’s the opposite. When Bitcoin is in the hands of crypto anarchists who are not regulated and disregard government policies, taxes, or reporting obligations, the risk of seizure actually increases.”
The Significance of Bitcoin Self-Custody
The Bitcoin community responded rapidly and vigorously to Saylor’s remarks, as reported by Bitcoinist. Even Ethereum co-founder Vitalik Buterin characterized Saylor’s comments as “batshit insane,” illustrating the widespread discontent among prominent figures in the crypto world.
In light of the backlash, Saylor seems to have revised his position. Through X, he clarified: “I advocate for self-custody for those who can and want it, support the right to self-custody for everyone, and the freedom to choose custody methods and custodians globally. #Bitcoin thrives with investments from all types of entities and should be inclusive.”
Gabor Gurbacs, founder of PointsVille and strategist at Tether, remarked that Saylor’s updated view “shouldn’t be controversial” and viewed it as “just common sense.”
Nonetheless, not everyone was swayed by Saylor’s revision. Bitcoin advocate Max Keiser voiced his concerns that the critical nature of self-custody—a foundational attribute of BTC’s value—was not sufficiently emphasized. He pointed out the significant risks involved when relying on others to hold one’s Bitcoin and reiterated that self-custody and the delineation between state and money are key aspects of Bitcoin.
“To be clear, El Salvador is establishing Bitcoin banks with clear stipulations highlighting that self-custody—and the division of state & money—are essential characteristics that define Bitcoin. Bitcoin is reshaping money and the understanding of the nation-state as it has existed for over 300 years,” he elaborated.
Industry analyst James Van Straten speculated that MicroStrategy is positioning itself as a BTC bank, in alignment with predictions made by Hal Finney back in 2010. While endorsing self-custody, Van Straten acknowledged that the involvement of institutions and accessibility, such as through ETFs, play pivotal roles in the adoption of BTC.
“Saylor is operating on a completely different level than the average retail investor. Depending on the next U.S. administration, he has to position himself judiciously. I would argue it’s even more foolish to align himself with crypto-anarchism. If he believes yield is necessary, then it must be,” Van Straten expressed on X.
Joe Burnett from Unchained offered a brief assessment: “Incredibly based.” Meanwhile, Joel Valenzuela, active in business development and marketing for Dash, commented on X: “Capitulation. But you revealed your true colors.”
As of the time of writing, BTC was trading at $67,700.
Featured image from YouTube, chart from TradingView.com
