Recently interview With journalist Madison Ready, Michael Saylor, CEO of MicroStrategy, has sparked huge controversy within the Bitcoin community with his remarks on custody and regulation. The discussion centered around the risks associated with large institutions holding large amounts of Bitcoin and the possibility of government seizure or confiscation, reminiscent of historical events such as the seizure of gold under Executive Order 6102 in 1933.
When asked about the risks of holding a large amount of Bitcoin with external custodians and large institutions, Saylor dismissed concerns about increased seizure or confiscation. He argued that BTC is safer in the hands of regulated public entities like BlackRock, Fidelity, and JP Morgan than in unregulated private holders. Saylor suggested that when bitcoin is held by “crypto anarchists” who operate outside government regulations and tax systems, it poses a greater risk of government interference.
“I think it’s the opposite. I think when bitcoin is held by a bunch of crypto anarchists who are not regulated entities, who don’t recognize the government or don’t recognize the taxes or don’t recognize the reporting requirements, that increases the risk of takeover.”
He stressed that regulated institutions provide stability and trustworthiness. “When you have regulated public entities like BlackRock, Fidelity, JP Morgan, and State Street Bank that own assets, all of the lawmakers and all of the law enforcement arms are investing in those entities. It’s not possible for all the senators and all the members of Congress to seize assets from Fidelity and BlackRock or Vanguard, because that’s where all their retirement money is invested.
Reddy raised the seizure of gold under Executive Order 6102 during the Great Depression as a historical precedent for potential government confiscation. Saylor dismissed the comparison, calling it a “myth and trope” promoted by paranoid “crypto anarchists.” He emphasized that the circumstances were fundamentally different, because the United States at that time was adopting the gold standard, and the government needed to control gold to reduce the value of the dollar.
“Today, we are not on the gold standard or the Bitcoin standard,” Saylor said. He argued that the US government had no more incentive to seize held BTC than it had to seize stocks or real estate. “I don’t think we have to worry about the government confiscating your held bitcoin, any more than you should worry about the government confiscating your Apple stock,” Saylor claimed.
Bitcoin community reaction
Saylor’s comments were not well received by many in the Bitcoin community, who value decentralization and self-custody as core principles. Jack Mallers, CEO of Strike, He responded on Defend and protect it.
He acknowledged his respect for Saylor but emphasized the importance of diversity of viewpoints 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 manipulate it as they see fit,” Mallers added.
Sina Nader, co-founder of 21st Capital criticize Saylor’s position: “Terrible view of Saylor becoming a con to the government and banking system and calling real Bitcoin users paranoid. Saylor is on a mission to turn Bitcoin into an investment rock and stop it being used as a currency.”
Samson Mo, CEO of JAN3, to caution: “The government doesn’t need to physically confiscate your Bitcoin. It can just lock the BTC held in approved custodians forever, also known as “institutional Bitcoin.” While a government that doesn’t follow the Bitcoin standard technically shouldn’t have An incentive to confiscate Bitcoin, but in reality they still have an incentive to smash and attack Bitcoin.”
Moe suggested that governments may seek to undermine bitcoin because it represents “harder, superior money” that can undercut the value of fiat currencies. He urged the community to “plan accordingly” through the self-custody solution and “anticipate (a)6102,” referring to the landmark executive order.
At press time, Bitcoin was trading at $67,707.
Featured image created with DALL.E, a chart from TradingView.com
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