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.
Key Takeaways:
- Hester Peirce says crypto self-custody is a basic freedom and people should not be forced to rely on intermediaries to hold their assets.
- She argues that financial privacy should be the default and not treated as evidence of wrongdoing.
- Her comments come as crypto legislation is delayed and ETFs pull some investors away from self-custody.
Speaking on The Rollup podcast, Peirce described herself as a “freedom maximalist” and argued that people should not be forced to rely on intermediaries to control their assets.
“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.
SEC’s Peirce Says Financial Privacy Should Be the Default
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.
“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.”
Her remarks arrive as uncertainty continues around US crypto legislation.
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.
SPECIAL EP: America's Crypto Regulatory Reset with SEC Commissioner @HesterPeirce.
Rob and Andy interviewed @SECGov Commissioner Hester Peirce about why 2025 marks the line in the sand for crypto regulation in America.
After years of regulation through enforcement, the table is… pic.twitter.com/QlNyJTDIgS— The Rollup (@therollupco) November 28, 2025
The lull has left the industry without a legal framework that directly addresses how Americans can legally hold and use digital assets.
Peirce’s comments also come at a time when self-custody itself faces competition from Wall Street products.
Spot Bitcoin exchange-traded funds have made crypto easier to access for traditional investors, drawing some users away from holding coins directly in private wallets.
Self-Custodied Bitcoin Falls for First Time in 15 Years
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.
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 real reason for all the whale movements out of self-custody is simple: taxes.
We are witnessing the first decline in self-custodied Bitcoin in 15 years.
BlackRock's iShares spot Bitcoin ETF (IBIT) has facilitated over $3 billion worth of Bitcoin conversions from whales.… pic.twitter.com/yepXRbLozM— Dr Martin Hiesboeck (@MHiesboeck) October 22, 2025
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.
He claimed that ETFs offer a convenient alternative, reducing the complexities and risks associated with holding private wallet keys.
One of the key reasons behind PlanB’s decision is the security challenge of managing private keys. “Not having to hassle with keys gives me peace of mind,” he stated.
The announcement sparked backlash from purists who see centralized custody as a betrayal of Bitcoin’s founding principles.
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