SEC’s Hester Peirce Defends Cryptocurrency Self-Governance and Financial Privacy
US Securities and Exchange Commission Commissioner Hester Peirce has renewed her defense of crypto self-custody, calling it a fundamental freedom and pushing back against the growing notion that privacy in financial transactions is somehow suspect. In a recent podcast, Peirce described herself as a “freedom maximalist” and argued that people should not be forced to rely on intermediaries to control their assets. “Of course people can control their own wealth,” she said, wondering why this principle should even be controversial in a country based on personal freedom.
Financial Privacy Should Be the Default
Peirce also took aim at what she called a cultural shift toward viewing financial privacy as a warning sign. Instead, she said, privacy should be the rule, not a sign of wrongdoing. “If you want to keep your transactions secret, you shouldn’t assume you’re doing anything illegal,” she said. “The opposite should be the case.” Her comments come as uncertainty over US crypto legislation continues, with the Digital Asset Market Structure Clarity Act, a bill that addresses self-custody, anti-money laundering rules, and the classification of digital assets, delayed until 2026.
Self-Custody vs. ETFs
The introduction of in-kind redemptions earlier this year allows ETF holders to exchange crypto for stocks without triggering a taxable event, a benefit that directly competes with personal wallets. According to Dr. Martin Hiesboeck, head of research at Uphold, the industry is seeing the “first decline in self-custody Bitcoin in 15 years” as investors move to ETFs for tax benefits and convenience. The debate intensified in February when analyst PlanB announced that it had moved its Bitcoins into ETFs to avoid the stress of managing private keys.
Conclusion
In conclusion, Peirce’s defense of crypto self-custody and financial privacy highlights the ongoing debate in the cryptocurrency industry. As the US crypto legislation continues to evolve, it is essential to consider the principles of personal freedom and financial privacy. For more information, visit https://cryptonews.com/news/secs-hester-peirce-defends-crypto-self-custody-and-financial-privacy/
