In a recent interview with journalist Madison Reidy, Michael Saylor, CEO of MicroStrategy, ignited significant debate within the Bitcoin community with his comments regarding custody and regulation. The conversation focused on the dangers involved when large institutions control substantial amounts of BTC and the possibilities of government seizure or confiscation, echoing historical instances like the gold confiscation under Executive Order 6102 in 1933.
When pressed about the risks linked to third-party custodians and large institutions holding considerable BTC, Saylor dismissed fears of heightened seizure or confiscation. He posited that BTC is more secure in the hands of regulated public entities such as BlackRock, Fidelity, and JP Morgan rather than with unregulated private holders. Saylor noted that Bitcoin in the hands of “crypto anarchists” who operate outside government regulations and tax enforcement is subject to higher risks of government intervention.
“I believe the opposite is true. When Bitcoin is owned by a group of unregulated crypto anarchists who disregard government oversight and tax obligations, they expose themselves to a greater risk of seizure,” he asserted.
He stressed that regulated institutions ensure stability and reliability. “With regulated public companies like BlackRock, Fidelity, JP Morgan, and State Street Bank managing the asset, lawmakers and law enforcement agencies are invested in these entities. It’s unlikely that congressmen or senators would seize assets from Fidelity, BlackRock, or Vanguard as that’s where much of their retirement funds lie.”
Reidy referenced the gold confiscation under Executive Order 6102 during the Great Depression as a historical analogy for possible government seizure. Saylor rebuffed this comparison, deeming it a “myth and a trope” spread by paranoid “crypto anarchists.” He argued that the situation differs fundamentally, as the US was then on the gold standard and the government needed to control gold to devalue the dollar.
“Currently, we are not on the gold standard or the Bitcoin standard,” Saylor remarked. He contended that the US government has no motivation to seize BTC held by custodians any more than it would to seize stocks or real estate. “I don’t believe we should worry about the government seizing Bitcoin in custody any more than you should fret over your Apple stock being confiscated by the government,” Saylor expressed.
Bitcoin Community Response
Saylor’s comments were met with backlash from many in the Bitcoin community, who prioritize decentralization and self-custody as fundamental tenets. Jack Mallers, CEO of Strike, responded on X: “Labeling self-custody as ‘crypto-anarchism’ simplifies the essence of what Bitcoin represents. It’s about liberty—freedom of speech, property rights, and safeguarding your ownership of your assets. We must not trivialize this; freedom cannot be taken for granted—it demands effort and protection.”
He acknowledged his respect for Saylor but stressed the necessity of diverse perspectives in an open market. “My aim is simply to advocate for the principles that empower Bitcoin: freedom and the capacity for anyone to interact with it as they choose,” Mallers reiterated.
Sina Nader, co-founder of 21st Capital, criticized Saylor’s stance: “It’s disheartening to see Saylor becoming a spokesperson for the government and banking establishment while labeling genuine Bitcoin enthusiasts as paranoid. Saylor seems intent on relegating Bitcoin to mere investment assets and stifling its function as a currency.”
Samson Mow, CEO of JAN3, alerted: “A government doesn’t necessarily need to physically take your Bitcoin. It can simply freeze custodial BTC within approved custodians indefinitely, often referred to as ‘Institutional Bitcoin.’ Even though a government not aligned with a Bitcoin Standard technically shouldn’t have motives to confiscate BTC, it still has incentives to undermine and attack Bitcoin.”
Mow proposed that governments might aim to weaken Bitcoin due to it representing a “better and superior form of currency” that could threaten the value of fiat money. He advised the community to “have a self-custody plan” and “anticipate [a] 6102,” alluding to the historical executive order.
At the time of publication, BTC was priced at $67,707.
Featured image generated with DALL.E, chart from TradingView.com
