After facing backlash for comments suggesting that regulated entities like BlackRock and Fidelity are safer options for holding Bitcoin, MicroStrategy founder Michael Saylor clarified his stance on self-custody.
In a tweet, Saylor expressed his support for individuals who choose to self-custody their Bitcoin, while also advocating for the right of everyone to make their own choice.
He even went on to emphasize that Bitcoin should be open to all forms of investment, welcoming contributions from both individuals and institutions.
“I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally. #Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.”
Bitcoin Custody Debate Heats Up
As spot Bitcoin ETFs and other traditional investment vehicles gain popularity, the debate over crypto self-custody continues to grow.
Meanwhile, Saylor’s latest clarification comes after significant backlash from the crypto community. In the controversial statement to the NZ Herald senior business journalist Madison Reidy earlier this week, Saylor highlighted the perceived risks associated with Bitcoin being held by unregulated private entities and “crypto-anarchists,” who often “reject government oversight, taxes, and reporting requirements.”
He argued that this increases the potential for asset seizure, as such entities operate outside the boundaries of regulation. Instead, Saylor suggested that when Bitcoin is held by large, regulated public institutions like BlackRock, Fidelity, JPMorgan, and State Street Bank, the risk of seizure is significantly lower.
This is because these institutions have the backing of lawmakers and law enforcement, given that many of these entities manage retirement funds for politicians and government officials, he explained.
Backlash
The controversial statement did not sit well with many crypto advocates. Ethereum co-founder Vitalik Buterin, for one, called the remarks “batshit insane” and argued that Saylor’s approach – favoring regulatory capture by ensuring lawmakers and law enforcement have vested interests in these entities – contradicts the core principles of crypto.
Buterin pointed out that there is ample precedent for the failure of such strategies and emphasized that crypto is about decentralization and resisting the control of large institutions.
Max Keiser, a renowned Bitcoin maximalist, also criticized Saylor’s comments attacking self-custody, saying they demonstrate a regressive tendency to favor the same centralized banks that Bitcoin was meant to challenge.
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