Michael Saylor's Bitcoin Custody Remarks Ignite Controversy Within the Community

In a recent interview with journalist Madison Reidy, Michael Saylor, CEO of MicroStrategy, ignited significant controversy within the Bitcoin community over his remarks on custody and regulation.

Michael Saylor, the CEO of MicroStrategy, sparked heated debate within the Bitcoin community after making bold statements about custody and regulation in a recent interview with journalist Madison Reidy.

Amidst growing apprehension over large institutions and third-party custodians holding substantial amounts of BTC, Saylor surprisingly argued against self-custody and dismissed fears of heightened seizure or confiscation.

According to Saylor, BTC is safer when held by regulated public entities like BlackRock, Fidelity, and JPMorgan Chase, rather than by unregulated private holders. He stated, “I think it’s the opposite. I think that when Bitcoin is held by a bunch of crypto anarchists who aren’t regulated entities, who don’t acknowledge government or don’t acknowledge taxes or don’t acknowledge reporting requirements, that increases the risk of seizure.”

Highlighting the importance of self-custody for BTC's value proposition, several members of the crypto community expressed strong disagreement with Saylor's remarks.

Even Ethereum co-founder Vitalik Buterin joined the fray, describing Saylor’s statement as “batshit insane,” reflecting the widespread disapproval from prominent figures in the crypto space.

Faced with mounting criticism, Saylor appears to have shifted his position. Via X, he clarified his stance, emphasizing support for self-custody for those able and willing, the right to self-custody for all, and freedom to choose the form of custody and custodian for individuals and institutions globally.

“I support self-custody for those willing & able, the right to self-custody for all, and freedom to choose the form of custody & custodian for individuals & institutions globally. #Bitcoin benefits from all forms of investment by all types of entities, and should welcome everyone.”

Gabor Gurbacs, founder of PointsVille and a strategist at Tether, commented that Saylor’s adjusted stance “shouldn’t be a controversial position” and considered it “just common sense.” However, not all were fully satisfied.

Bitcoin advocate Max Keiser highlighted the high risks involved in having others custody one’s Bitcoin and noted that self-custody and the separation of state and money are key characteristics that define it.

“To be clear, El Salvador is opening up Bitcoin banks attached with caveats clearly stating that self-custody—and the separation of state & money—are key characteristics that define Bitcoin. Bitcoin is transforming money & the concept of the nation state too..”

While advocating for self-custody, industry analyst James Van Straten acknowledged that institutional involvement and ease of access, such as through ETFs, are important for BTC adoption. He also speculated that MicroStrategy might be positioning itself as a BTC bank.

“Saylor is playing a completely different game than the average pleb. Depending on the next US administration, he has to position himself carefully. I would argue it’s even more stupid to position himself as a crypto-anarchist. If he deems yield is necessary, then it is. Got the first four years right.”

At press time, BTC trades at $67,700.