MicroStrategy’s Michael Saylor calls for freedom of choice in Bitcoin custody amid backlash

After facing comments suggesting that regulated entities like BlackRock and Fidelity are safer options for holding Bitcoin, MicroStrategy founder Michael Saylor clarified his position on self-custody.

In a tweet, Saylor expressed his support for people who choose to self-custodial their Bitcoin, while defending everyone’s right to make their own choice.

He even emphasized that Bitcoin should be open to all forms of investment, welcoming contributions from both individuals and institutions.

“I support self-custody for those who want and can, the right to self-custody for everyone, and the freedom to choose the form of custody and custody for individuals and institutions globally. #Bitcoin benefits of all forms of investment from all types of entities and should welcome everyone.

Bitcoin Custody Debate Heats Up

As local Bitcoin ETFs and other traditional investment vehicles gain popularity, the debate around crypto-custody continues to grow.

Meanwhile, Saylor’s latest clarification comes after significant backlash from the crypto community. In the controversial statement to NZ Herald senior business reporter Madison Reidy earlier this week, Saylor highlighted the perceived risks associated with Bitcoin being in the hands of unregulated private entities and “cryptoanarchists”, who often “reject government oversight, taxation and reporting requirements.

He argued that this increases the potential for asset forfeiture as these entities operate outside the bounds of regulation. Instead, Saylor suggested that when Bitcoin is in the hands of 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 support of lawmakers and law enforcement, since many of these entities manage the retirement funds of politicians and government officials, he explained.

reaction

The controversial statement did not sit well with many crypto advocates. Ethereum co-founder Vitalik Buterin called the remarks “bullshit” and argued that Saylor’s approach – favoring regulatory capture by ensuring lawmakers and law enforcement have vested interests in these entities – contradicts the basic principles of cryptography.

Buterin noted that there is ample precedent for the failure of such strategies and emphasized that cryptography is about decentralization and resistance to the control of large institutions.

Max Keiser, a well-known Bitcoin maximalist, also criticized Saylor’s comments attacking self-custody, saying they demonstrate a regressive tendency to favor the very centralized banks that Bitcoin was meant to challenge.

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