US Securities and Exchange Commission Commissioner Hester Peirce has renewed her defense of crypto self-custody, calling it a basic freedom and pushing back against the growing idea that privacy in financial transactions is somehow suspicious.
“Of course people can hold their own assets,” she said, questioning why that principle should even be controversial in a country founded on personal liberty.
“If you want to keep your transactions private, the assumption shouldn’t be that you’re doing something illegal,” she said. “It should be the opposite.” According to Senator Tim Scott, the Digital Asset Market Structure Clarity Act, a bill that addresses self-custody, anti-money laundering rules and the classification of digital assets, has been delayed until 2026.
Peirce also took aim at what she described as a cultural shift toward treating financial privacy as a red flag. Instead, she said, privacy should be the default, not a sign of wrongdoing.
The introduction of in-kind redemptions earlier this year allows ETF holders to swap crypto for shares without triggering a taxable event, a benefit that directly competes with personal wallets. The debate intensified in February when analyst PlanB disclosed that he had moved his Bitcoin into ETFs to avoid the stress of managing private keys.
Dr. Martin Hiesboeck, head of research at Uphold, said the industry is seeing the “first decline in self-custodied Bitcoin in 15 years,” as investors shift into ETFs for tax advantages and convenience.
