Michael Saylor Remarks on Bitcoin Custody and Regulation Stir Controversy in the Community

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

Michael Saylor, CEO of MicroStrategy, recently made waves in the Bitcoin community with his remarks on large institutions holding significant amounts of BTC and the potential for government seizure or confiscation.

During an interview with journalist Madison Reidy, Saylor dismissed concerns about the risks associated with third-party custodians and large institutions holding a substantial portion of BTC. He argued that BTC is safer in the hands of regulated public entities like BlackRock, Fidelity, and JP Morgan than with unregulated private holders.

Saylor suggested that when Bitcoin is held by “crypto anarchists” 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 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.”

He highlighted the stability and trustworthiness provided by regulated institutions. “When you have regulated public entities like BlackRock, Fidelity, JP Morgan, and State Street Bank holding the asset, all the lawmakers and all the law enforcement arms are invested in those entities. There’s no way that all the senators and all the congressmen are going to seize the assets from Fidelity and BlackRock or Vanguard because that’s where all their retirement money is invested.”

Reidy mentioned the gold confiscation under Executive Order 6102 during the Great Depression as a historical precedent for potential government seizure. However, Saylor dismissed this comparison, labeling it a “myth and a trope” propagated by paranoid “crypto anarchists.” He argued that the circumstances are fundamentally different because, at that time, the US was on the gold standard, and the government needed to control gold to devalue the dollar.

“Today, we’re not on the gold standard or the Bitcoin standard,” Saylor stated. He contended that the US government has no incentive to seize BTC held in custody any more than it would seize stocks or real estate.

“I don’t think we have to worry about Bitcoin held in custody being seized by the government any more than you have to worry about your Apple stock being seized by the government,” Saylor claimed.

These remarks drew mixed reactions within the Bitcoin community, with many valuing decentralization and self-custody as core principles.

Jack Mallers, CEO of Strike, took to X: to express his thoughts on Saylor’s comments. He acknowledged his respect for Saylor but emphasized the importance of diverse views in a free market.

“My goal is simply to defend the principles that I believe make Bitcoin powerful: freedom and the ability for anyone to engage with it however they see fit,” Mallers added.

Sina Nader, co-founder of 21st Capital, also shared his thoughts on Saylor’s position: “Terrible look for Saylor to become a shill for the government and banking system and call true Bitcoiners paranoid. Saylor is on a mission to relegate Bitcoin into an investment pet rock and halt its usage as a currency.”

Samson Mow, CEO of JAN3, offered his perspective on the matter, urging the community to “plan accordingly” with a self-custody solution and “expect [a] 6102,” referencing the historical executive order.

At press time, BTC was trading at $67,707.