SEC’s Hester Peirce Advocates for Crypto Self-Custody and Privacy
- Hester Peirce, SEC commissioner, emphasized self-custody as a fundamental human right during a podcast interview.
- Peirce criticized the presumption that private transactions are suspicious, advocating for financial privacy as the norm.
- The Digital Asset Market Structure Clarity Act, which includes self-custody provisions, has been delayed until 2026.
- Dr. Martin Hiesboeck noted a decline in self-custodied Bitcoin for the first time in fifteen years due to the rise of ETFs.
- The SEC approved in-kind ETF transactions in July, allowing tax-efficient exchanges between crypto and ETF shares.
Peirce’s comments come amid significant shifts in the cryptocurrency landscape, particularly with growing adoption of ETFs, which challenge traditional notions of Bitcoin self-custody. The delay of regulatory clarity on self-custody could impact how investors manage their digital assets moving forward.
With a noted decline in self-custodied Bitcoin and increasing reliance on ETFs for tax benefits, the original ethos of “not your keys, not your coins” faces new challenges.(Source)
