Ethereum co-founder Vitalik Buterin has joined the growing chorus of criticism against MicroStrategy founder and Bitcoin advocate Michael Saylor over his remarks on regulated entities for Bitcoin custody. Buterin’s comments came in response to Saylor’s suggestion that concerns over regulated Bitcoin custody were primarily driven by “paranoid crypto-anarchists.”
During an interview with NZ Herald business journalist Madison Reidy, Saylor advocated for holding Bitcoin through regulated entities like BlackRock, Fidelity, and JPMorgan, arguing that this approach would provide greater security, stability, and protection from government crackdowns. He dismissed fears of government seizure or increased centralization as exaggerated, particularly among self-custody advocates.
Buterin, however, took issue with Saylor’s stance, calling it “batshit insane” in a post on X (formerly Twitter). “He seems to be explicitly arguing for a regulatory capture approach to protecting crypto,” Buterin said. “There’s plenty of precedent for how this strategy can fail, and for me, it’s not what crypto is about.”
Buterin’s criticism echoed concerns from Jameson Lopp, co-founder and CTO of Casa, who emphasized the importance of self-custody in maintaining Bitcoin’s decentralization, security, and innovation. Lopp argued that trusting third-party custodians could undermine the core principles of Bitcoin.
Saylor, while not dismissing self-custody entirely, maintained that regulated institutions offer a safer alternative, citing historical precedents like the U.S. gold seizures of 1933 to support his case. Despite the backlash, Saylor continues to advocate for regulated Bitcoin custody as a step towards reducing volatility and securing Bitcoin’s future as a store of value.