The right to self-custody of digital assets and financial privacy are essential rights, according to Hester Peirce, who serves as a commissioner at the United States Securities and Exchange Commission (SEC) and leads the SEC’s Crypto Task Force.

Peirce emphasized her commitment to personal freedom during a recent interview with The Rollup podcast:

“Why should I have to be forced to go through someone else to hold my assets? It baffles me that in this country, which is so premised on freedom, that would even be an issue — of course, people can hold their own assets.”

She argued that maintaining financial privacy should be the norm rather than the exception, criticizing the current expectation that private transactions suggest wrongdoing.

These comments arise amid delays regarding the Digital Asset Market Structure Clarity Act, which supports self-custody and compliance with anti-money laundering regulations. Tim Scott, a senator, recently indicated that the bill’s progress has been postponed until 2026.

A Shift in Bitcoin Custody Philosophy

Recent trends show that prominent Bitcoin holders are moving away from self-custody to exchange-traded funds (ETFs) for convenience and tax advantages. Dr. Martin Hiesboeck noted that this marks the first significant reduction in self-custodied Bitcoin in 15 years, attributing this shift to favorable SEC rulings regarding crypto ETFs.

Hiesboeck expressed concern that this transition undermines the foundational principle of Bitcoin:

“A move away from the self-custody mantra of ‘not your keys, not your coins’ is another nail in the coffin of the original crypto spirit.”

This has also sparked controversy within the Bitcoin community, especially after analyst PlanB’s announcement that he had transitioned his holdings to ETFs, raising alarms about the implications for Bitcoin’s core values.