SEC Commissioner Hester Peirce: Self-custody of encryption assets is a fundamental right

According to a report by Cointelegraph on November 30, Hester Peirce, a commissioner of the U.S. SEC, stated in a podcast interview that the “self-custody” of crypto assets and financial privacy are fundamental human rights. She emphasized, “Why should I be forced to have someone else hold my assets? … People should have the right to hold their own assets.” She noted that in a country like the U.S., which emphasizes freedom, it is perplexing to mandate the custody of assets to third parties, and online financial privacy should be the default state, not the default public.

These remarks come at a time when the CLARITY Act is postponed for review until 2026. The bill was originally planned to include provisions for the “self-custody rights” of encryption assets, anti-money laundering rules, asset classification, and more. At the same time, the industry has noted that with the launch of various encryption ETFs, some large holders and long-term holders are shifting from “self-custody coins” to “holding in ETF form” in order to enjoy tax benefits and avoid the hassle of private key management. There are concerns that this may gradually undermine the principle of “wallet is sovereignty” that the encryption community has always emphasized.