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UNITED STATES – JUNE 3: SEC Chairman Paul Atkins (Tom Williams/CQ-Roll Call)
CQ-Roll Call, Inc via Getty Images
At a Securities and Exchange Commission roundtable on June 9, 2025, Chairman Paul S. Atkins called for protecting the right to self-custody Bitcoin and other digital assets.
His remarks, delivered at the Crypto Task Force event titled “DeFi and the American Spirit,” were rooted in a broader vision of economic liberty. Atkins, known for his market-friendly regulatory philosophy, framed decentralized finance and self-custody as modern expressions of deeply American ideals.
Pointedly private property, innovation, and individual sovereignty.
“The right to have self-custody of one’s private property is a foundational American value that should not disappear when one logs onto the internet,” he stated. SEC’s Atkins Defends Bitcoin Self-Custody and Code Freedom
Atkins’ speech comes amid increasing public awareness of digital asset custody. After the spectacular collapses of centralized crypto platforms like FTX and Celsius, many investors have turned to self-custody, storing their assets in wallets they control to minimize counterparty risk.
In his remarks, Atkins praised blockchain technology for enabling direct ownership of digital property without intermediaries. He likened decentralized networks to “free market systems” that reward users for validating transactions, and he rejected regulatory frameworks that penalize participation in open protocols.
“Engineers should not be subject to federal securities laws solely for publishing software code,” Atkins emphasized, pushing back against enforcement actions targeting developers of self-custody wallets and DeFi applications.
He drew a vivid analogy of holding developers liable for how users employ self-executing software is equivalent to suing a carmaker because someone used their vehicle to commit a crime.
Launching an ‘Innovation Exemption’
Atkins also challenged the SEC to move beyond ambiguous guidance and adopt clear, fit-for-purpose rules for decentralized systems. While he welcomed recent statements from the Division of Corporation Finance clarifying that staking and validating do not necessarily constitute securities transactions, he emphasized that such opinions lack the force of law.
To address this, Atkins proposed a conditional “innovation exemption” allowing both registrants and non-registrants to launch on-chain products without navigating an outdated regulatory maze.
It was a striking statement from a senior SEC official, underscoring the political realignment around crypto in 2025.
The Case for Self-Custody
Atkins’ remarks reflect a growing recognition that self-custody isn’t just a technical preference, but a philosophical choice.
Bitcoin, often likened to digital gold, is especially well-suited to self-custody. Its fixed supply and peer-to-peer nature allow users to hold it outside the traditional financial system. With a growing number of platforms offering user-friendly tools for multi-signature cold storage, self-custody is no longer the exclusive domain of tech-savvy early adopters.
Multisig vaults require multiple approvals to move funds, dramatically lowering the risk of theft or accidental loss.
Bitcoin can be purchased instantly, stored digitally, and transferred globally. Because of that, investors who want complete control over their assets, much like holding physical gold, now have more options to securely self-custody their Bitcoin.
The rise of these services signals a shift toward empowering everyday investors, including retirees and wealth managers, to take control of their financial futures.
The Risks of Digital Asset Self-Custody
But self-custody is not without risk.
One of the most commonly cited concerns is user error. Losing the private keys that unlock a Bitcoin wallet can mean permanent loss of funds, with no customer service line to call.
This risk grows more acute in natural disasters, death, or memory loss. Without a robust inheritance plan or backup access, Bitcoin held in self-custody can effectively vanish.
Others worry about the threat of hacking, especially when funds are stored in so-called “hot wallets” connected to the internet. These are more convenient for frequent use but also more vulnerable to attack. Security experts often recommend storing most crypto assets in “cold wallets” that remain offline.
Fear Surrounding Retroactive Enforcement
While Atkins’ advocacy for a more straightforward regulatory path is a step forward, the door remains open for retroactive enforcement.
Previous administrations blurred the line between software development and financial services, resulting in lawsuits against creators of non-custodial wallet software.
Atkins’ call for legal clarity, especially for developers of self-custody and DeFi tools, is a welcome signal to the industry. However, the industry still needs concrete rulemaking before it can confidently build on American soil.
Digital Asset Self-Custody in a Post-FTX World
The collapse of FTX in 2022 served as a painful reminder of the dangers of centralized custody. Billions in user funds were lost or frozen, with limited recourse. In the aftermath, self-custody has gained traction as the default recommendation among many Bitcoin advocates.
The phrase “not your keys, not your coins” has emerged as a popular expression of digital sovereignty. However, true self-custody requires more than just control. It calls for education, careful planning, and a strong sense of responsibility.
In response, hybrid models are gaining traction by helping users maintain control over their assets while offering support features like guided setup, backup key storage, and institutional-grade security to reduce risk.
These innovations mirror the growing consensus that self-custody is achievable and advisable, but must be done responsibly.
‘We should not automatically fear the future’ of digital assets
Atkins’ remarks may prove to be a defining moment in crypto’s regulatory history. By championing self-custody and decentralized software, he reaffirmed a vision of financial freedom rooted in individual agency rather than institutional control.
But the road forward remains uncertain. Without legally binding reforms, entrepreneurs may continue to innovate offshore, and investors may continue to face an uneven patchwork of protections.
Still, there is momentum. With a supportive SEC commissioner, a deregulatory White House, and a surge of interest in Bitcoin’s store-of-value properties, the groundwork is laid for a more secure and sovereign financial future.
As Atkins concluded, “We should not automatically fear the future.”
If the future embraces safe and responsible self-custody of digital assets, the potential benefits are significant.
