In a recent interview With journalist Madison Reidy, Michael Saylor, CEO of MicroStrategy, sparked a huge controversy within the bitcoin community with his comments on custody and regulation. The discussion focused on the risks associated with large institutions holding significant amounts of btc and the possibility of seizure or confiscation by the government, reminiscent of historical events such as the confiscation of gold under Executive Order 6102 in 1933.
When asked about the risks of holding a significant amount of btc in the hands of third-party custodians and large institutions, Saylor dismissed concerns of further seizure or confiscation. He argued that btc is safer in the hands of regulated public entities such as BlackRock, Fidelity and JP Morgan than in the hands of unregulated private holders. Saylor suggested that when bitcoin is in the hands of “cryptoanarchists” who operate outside of government regulations and tax systems, it poses a greater risk of government intervention.
“I think it's the opposite. “I think when bitcoin is in the hands of a group of crypto-anarchists who are not regulated entities, who do not recognize the government, who do not recognize taxation, or who do not recognize reporting requirements, that increases the risk of seizure.”
He emphasized that regulated institutions provide stability and reliability. “When you have regulated public entities like BlackRock, Fidelity, JP Morgan and State Street Bank that own the asset, all the legislators and all the law enforcement agencies are invested in those entities. There is no way that every senator and every congressman is going to grab the assets of Fidelity, BlackRock or Vanguard because that is where all your retirement money is invested.”
Reidy cited the seizure of gold under Executive Order 6102 during the Great Depression as a historical precedent for a possible government seizure. Saylor dismissed this comparison, calling it a “myth and trope” propagated by paranoid “cryptoanarchists.” He argued that the circumstances are fundamentally different because, at the time, the United States was on the gold standard and the government needed to control gold to devalue the dollar.
“Today, we don't follow the gold standard or the bitcoin standard,” Saylor said. He argued that the US government has no incentive to seize btc in custody, any more than it would with stocks or real estate. “I don't think we have to worry about the government confiscating bitcoin into custody, any more than you have to worry about the government confiscating your Apple stock,” Saylor said.
bitcoin community reaction
Saylor's comments did not sit well with many in the bitcoin community, who value decentralization and self-custody as core principles. Strike CEO Jack Mallers x.com/jackmallers/status/1848510618774450255″ target=”_blank” rel=”noopener nofollow”>responded at x: “Calling self-custody 'cryptoanarchism' oversimplifies what bitcoin achieves. It's about freedom: freedom of speech, property rights, and protecting the right to own what is yours. We should not rule it out because freedom is not promised: we must fight for it and protect it.”
He acknowledged his respect for Saylor but emphasized the importance of diversity of views in a free market. “My goal is simply to defend the principles that I believe make bitcoin powerful: the freedom and ability of anyone to interact with it as they see fit,” Mallers added.
Sina Nader, co-founder of 21st Capital, x.com/Sina_21st/status/1848450657205789161″ target=”_blank” rel=”noopener nofollow”>criticized Saylor’s position: “It is terrible that Saylor becomes a shill for the government and the banking system and calls true Bitcoiners paranoid. “Saylor is on a mission to relegate bitcoin to an investment mascot and stop its use as a currency.”
Samson Mow, CEO of JAN3, x.com/Excellion/status/1848496435807064380″ target=”_blank” rel=”noopener nofollow”>warned: “A government does not need to physically confiscate your bitcoin. You can simply lock btc in escrow at approved custodians forever, also known as “Institutional bitcoin.” “While a government that is not technically on a bitcoin standard should have no incentive to confiscate btc, it actually still has an incentive to degrade and attack bitcoin.”
Mow suggested that governments could try to undermine bitcoin because it represents “harder, superior money” that could decrease the value of fiat currencies. He urged the community to “plan accordingly” with a self-custody solution and “wait (for) 6102,” referencing the landmark executive order.
At the time of publication, btc was trading at $67,707.
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