If you’ve ever felt uneasy handing your crypto self-custody over to some exchange or custodian, you’re not alone. According to Hester Peirce, one of the most pro-crypto voices inside the SEC, you shouldn’t have to either.
Hester Peirce, the commissioner everyone in crypto actually likes, just went on The Rollup podcast and said that crypto self-custody is a basic human right.
“I’m a freedom maximalist,” Peirce said without hesitation.
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“Why should I be forced to go through someone else to hold my own assets? It baffles me that in a country built on freedom, crypto self-custody is even up for debate. Of course people should be able to hold their own damn keys.”
She didn’t stop there. Peirce flipped the entire surveillance narrative on its head as well.
“Today if you want financial privacy, people assume you’re hiding something shady. That’s backwards. Privacy should be the default, not the red flag.”
This isn’t some strange opinion. It’s a valid perspective coming straight from the head of the SEC’s Crypto Task Force at a moment when lawmakers are dragging their feet on bills that would finally protect crypto self-custody in law.
The Bitter Irony: Bitcoin ETFs Are Eating Self-Custody Alive
Now here’s where it gets painful.
While Peirce is out here fighting the good fight for crypto self-custody, the data shows whales and long-term holders are quietly doing the exact opposite.
They are dumping their self-custodied Bitcoin into ETFs faster than ever.
For the first time in 15 years, the amount of self-custodied Bitcoin is actually going down.
Dr. Martin Hiesboeck, head of research at Uphold affirmed this.
“We’re watching the first real decline in self-custodied Bitcoin ever. The SEC’s approval of in-kind ETF creations and redemptions made it too easy. Swap your BTC for ETF shares without getting crushed by taxes. Convenience is winning.”
Even PlanB, the guy who literally created the stock-to-flow model everyone quotes, admitted earlier this year he moved his stack into ETFs just to escape the headache of managing private keys.
The Bitcoin purists lost their minds (rightfully so). Handing your coins to BlackRock or Fidelity feels like the ultimate betrayal of “not your keys, not your coins.”
So Where Does This Leave Us?
On one side: a rare regulator who gets it, loudly defending crypto self-custody as a core American freedom.
On the other: millions of coins flowing out of cold wallets into Wall Street’s warm embrace because, let’s be honest, most people hate the responsibility that comes with real crypto self-custody.
But at the end of the day your keys, your choice. Just don’t pretend it doesn’t matter.
