Crypto self-custody is a fundamental right, says SEC’s Hester Peirce

Hester Peirce, a commissioner of the United States Securities and Exchange Commission (SEC) and head of the SEC’s Crypto Task Force, reaffirmed the right to crypto self-custody and privacy in financial transactions.

“I’m a freedom maximalist,” Peirce The Rollup podcast on Friday, while saying that is a fundamental human right. She added:

“Why 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 — of course, people can hold their own assets.”

Peirce added that should be the standard. “It 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,” she said.

The comments came as the , a crypto market structure bill that includes provisions for self-custody, , and asset taxonomy, is delayed until 2026, to Senator Tim Scott.

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Many large Bitcoin () whales and long-term holders are to reap the tax benefits and hassle-free management of owning crypto in an investment vehicle.

“We are witnessing the first decline in self-custodied Bitcoin in 15 years,” Dr. Martin Hiesboeck, the head of research at crypto exchange Uphold, .

Hiesboeck attributed the shift to the SEC 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.

“A move away from the self-custody mantra of ‘not your keys, not your coins’ is another nail in the coffin of the original crypto spirit,” Hiesboeck added.

In February, notable Bitcoin analyst and investor PlanB, the developer of the , announced that he to alleviate the “hassle” of private key management.

PlanB’s caused an outcry in the Bitcoin community, as many voiced concerns that handing over custody to a third party .

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