SEC Commissioner Peirce Affirms Crypto Self-Custody as ETFs Gain Traction

Saturday Nov 29 2025 17:50

Duration

2 min

  1. 1. Key Takeaways

  2. 1.1 ETFs Challenge Bitcoin’s Self-Custody Ethos

Key Takeaways

  • Hester Peirce emphasizes the fundamental right to self-custody of digital assets and financial privacy.
  • Digital Asset Market Structure Clarity Act delayed until 2026.
  • Long-term Bitcoin holders are shifting towards ETFs for tax benefits and ease of management.
  • Concerns raised about the move to ETFs undermining the original crypto ethos.
Hester Peirce, a commissioner of the United States Securities and Exchange Commission (SEC) and head of the SEC’s Crypto Task Force, has reaffirmed the right to crypto self-custody and privacy in financial transactions. “I’m a freedom maximalist,” Peirce told The Rollup podcast on Friday, stating that self-custody of assets is a fundamental human right. She elaborated, “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 further emphasized that online financial privacy 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. These comments come as the Digital Asset Market Structure Clarity Act, a crypto market structure bill that includes provisions for self-custody, anti-money laundering (AML) regulations, and asset taxonomy, faces a delay until 2026, according to Senator Tim Scott.

ETFs Challenge Bitcoin’s Self-Custody Ethos

Many large Bitcoin (BTC) whales and long-term holders are increasingly pivoting from self-custody to Exchange-Traded Funds (ETFs) to leverage the tax advantages and simplified management associated with owning crypto within an investment vehicle. “We are witnessing the first decline in self-custodied Bitcoin in 15 years,” noted Dr. Martin Hiesboeck, the head of research at crypto exchange Uphold. Hiesboeck attributed this shift to the SEC's approval in July of in-kind creations and redemptions for crypto ETFs, enabling 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, prominent Bitcoin analyst and investor PlanB, the creator of the BTC stock-to-flow model, announced that he had transferred his Bitcoin holdings to ETFs to mitigate the “hassle” of private key management. PlanB’s announcement sparked considerable debate within the Bitcoin community, with many expressing concerns that delegating custody to a third party contradicted Bitcoin's fundamental principles.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

Default Author Avatar

Written by:

Ava Grace

Asset List

View Full List
Most Traded Commodities Indices Crypto Shares Forex
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now

Latest

View all
spacex-stock

Wednesday, 12 August 2026

Duration

7 min

SpaceX Stock Jumps 9.7% on Starlink and AI Push; LUNR Gains Ahead of Earnings

Tuesday, 11 August 2026

Duration

6 min

Gold Price Today, August 12, 2026: XAU/USD Rises 0.5% Near $4,400 Ahead of US CPI
What Factors Drive Crude Oil Price Fluctuations

Tuesday, 11 August 2026

Duration

5 min

Oil Nears $90 as Fading U.S.-Iran Deal Hopes Renew Hormuz Supply Fears

Latest news

gold-trading

Wednesday, 12 August 2026

Indices

Gold Price Today, August 13: Gold Climbs Above $4,400 as Cooler US CPI Cuts Fed Hike Bets

tsmc-stock

Wednesday, 12 August 2026

Indices

TSMC Stock Rises 1.7% as AI Infrastructure Rally Lifts Chip Sector

WTI vs Brent Crude Oil

Wednesday, 12 August 2026

Indices

Oil Prices Fall Over 1% as OPEC and IEA Cut 2026 Demand Forecasts

bank-of-japan

Wednesday, 12 August 2026

Indices

USD/JPY forecast: Rate gap limits impact of US and Japanese intervention

kospi

Wednesday, 12 August 2026

Indices

KOSPI Jumps Nearly 5% as SK Hynix Surges 7% and Asian Chip Rally Accelerates

spacex-stock

Wednesday, 12 August 2026

Indices

SpaceX Stock Jumps 9.7% on Starlink and AI Push; LUNR Gains Ahead of Earnings

Tuesday, 11 August 2026

Indices

Gold Price Today, August 12, 2026: XAU/USD Rises 0.5% Near $4,400 Ahead of US CPI

What Factors Drive Crude Oil Price Fluctuations

Tuesday, 11 August 2026

Indices

Oil Nears $90 as Fading U.S.-Iran Deal Hopes Renew Hormuz Supply Fears

nio stock news today

Tuesday, 11 August 2026

Indices

NIO Stock News Today: Shares Slide as BlackRock Trims Stake Despite Record ES9 Demand

sk-hynix

Tuesday, 11 August 2026

Indices

U.S. Stocks Fall as SpaceX Drops 3.9%, While SK Hynix Jumps 4.7%

See all news