MicroStrategy CEO Michael Saylor dismissed the idea of governments seizing Bitcoin as a “metaphor,” but argued for custody by large financial institutions rather than self-custody.
Saylor recently appeared on the Markets with Madison podcast and addressed the concerns of people he calls “paranoid crypto anarchists” who fear such seizures. He said such individuals often defy regulations, government authority, taxes and reporting requirements, increasing the risk of foreclosure.
According to Thaler,
“When you have a bunch of unregulated crypto anarchists who don’t recognize government, don’t recognize taxes, don’t recognize reporting requirements, and hold Bitcoin, I think that increases the risk of seizure.”
He stressed that, by contrast, institutional managers comply with legal and tax obligations, which he believes reduces the likelihood of government intervention.
Saylor further added that instead of relying on self-custody methods like hardware wallets, it is better for Bitcoin holders to trust large, established banks designed to ensure the safety of their financial assets. He claimed that he could provide the service.
he said:
“There is an OG crypto community that is very engaged, but if you look at where all the money is, 99.9% of the money is actually in the traditional economy.”
A longtime supporter of Bitcoin, Saylor's comments surprised many in the community, as they go against the cypherpunk ethos at the heart of cryptocurrencies. Bitcoin proponents often advocate self-control, citing the risks associated with centralized authorities and entities.
Bitcoin community condemns Saylor
Saylor's comments sparked significant backlash from key figures in the Bitcoin community.
Sheena G., co-founder of 21st Capital, a Bitcoin-focused investment firm, called the stance “creepy” and accused Saylor of becoming “a nuisance to the government and the banking system.”
Sheena added:
“Saylor is on a mission to drive Bitcoin to the rocks of investment and stop its use as a currency.”
Jack Mullers, founder of the Bitcoin Lightning Network payments platform Strike, expressed concern about Saylor's U-turn, saying:
“Calling self-management “crypto-anarchism” oversimplifies what Bitcoin accomplishes. It's about defending freedom: freedom of speech, property rights, and the right to own what's yours. We must not ignore freedom because it is not promised; we must fight for it and protect it. ”
Bitcoin developer Jameson Ropp, co-founder and chief security officer of CasaHODL, added that Saylor’s comments were indicative of a broader disagreement. He pointed out that this comment signals the next battle over the future of Bitcoin, noting that those focused on institutional adoption are not prioritizing self-control, which could lead to improvements in the protocol and the network. He noted that he did not seem concerned about expansion.
Blockstream CEO Adam Back also commented on the issue, explaining that owning a Bitcoin exchange-traded fund (ETF) is similar to owning stocks or bank balances and does not offer true asset protection.
Unlike self-custodial Bitcoin, ETFs can be seized by court order, and the court must follow due process to demand the assets be handed over, Buck said. He pointed out:
“Self-custody does not absolve people, it just changes the responsibility so that the court has to go through due process and get a verdict.”
Buck concluded that self-custody rebalances the balance of power over individual rights by making it harder for governments and institutions to seize assets without proper legal process.
