Hester Peirce, a commissioner of the United States Securities and Exchange Commission (SEC) and head of the SEC\u2019s Crypto Task Force, reaffirmed the right to crypto self-custody and privacy in financial transactions.<\/p>\n
\u201cI\u2019m a freedom maximalist,\u201d Peirce told<\/a> The Rollup podcast on Friday, while saying that self-custody of assets<\/a> is a fundamental human right. She added:<\/p>\n \u201cWhy should I have to be forced to go through someone else to hold my assets? It baffles me that in this country, which is so premised on freedom, that would even be an issue \u2014 of course, people can hold their own assets.\u201d<\/p><\/blockquote>\n Peirce added that online financial privacy<\/a> should be the standard. \u201cIt has become the presumption that if you want to keep your transactions private, you’re doing something wrong, but it should be exactly the opposite presumption,\u201d she said.<\/p>\n The comments came as the Digital Asset Market Structure Clarity Act<\/a>, a crypto market structure bill that includes provisions for self-custody, anti-money laundering(AML) regulations<\/a>, and asset taxonomy, is delayed until 2026, according<\/a> to Senator Tim Scott.<\/p>\n Related: <\/strong><\/em>SEC to hold privacy and financial surveillance roundtable in December<\/strong><\/em><\/a><\/p>\n Many large Bitcoin (BTC<\/a>) whales and long-term holders are pivoting from self-custody to ETFs<\/a> to reap the tax benefits and hassle-free management of owning crypto in an investment vehicle.<\/p>\n \u201cWe are witnessing the first decline in self-custodied Bitcoin in 15 years,\u201d Dr. Martin Hiesboeck, the head of research at crypto exchange Uphold, said<\/a>.<\/p>\n <\/p>\n Hiesboeck attributed the shift to the SEC approving in-kind creations and redemptions<\/a> for crypto ETFs in July, which allowed authorized holders to exchange crypto for ETF shares and vice versa without triggering a taxable event, unlike cash-settled ETFs.<\/p>\n \u201cA move away from the self-custody mantra of \u2018not your keys, not your coins\u2019 is another nail in the coffin of the original crypto spirit,\u201d Hiesboeck added.<\/p>\n In February, notable Bitcoin analyst and investor PlanB, the developer of the BTC stock-to-flow model<\/a>, announced that he transferred his Bitcoin to ETFs<\/a> to alleviate the \u201chassle\u201d of private key management.<\/p>\n PlanB\u2019s announcement<\/a> caused an outcry in the Bitcoin community, as many voiced concerns that handing over custody to a third party clashed with Bitcoin\u2019s core values<\/a>.<\/p>\nExchange-traded funds (ETFs) challenge Bitcoin\u2019s self-custody ethos<\/h2>\n