The financial world has been buzzing lately with news on cryptocurrencies and regulatory shifts. Enthusiasts are rallying around the fact that the SEC has rescinded SAB 121. Many interpret this to mean that banks can now custody Bitcoin for clients. But let’s pause for a reality check. This interpretation is a big stretch considering that SAB 121 makes zero mention of Bitcoin.
The irony is hard to ignore. Satoshi Nakamoto’s entire vision behind Bitcoin was to eliminate the need for third-party custodians. Fast forward to 2025, and a significant portion of the Bitcoin community is now begging traditional financial institutions, the same ones they sought to escape from, to hold their cryptocurrency. This drift away from Bitcoin’s original purpose is alarming—a sharp divergence driven by collective greed and irrationality within the community.
Take Michael Saylor, for instance. He now controls over half a million Bitcoins. Or consider BlackRock, the world’s largest asset manager, moving to the forefront of the cryptocurrency world. These developments highlight a trend toward centralization, contrary to Bitcoin’s founding principles.
Adding to the mix, President Trump today signed an executive order to create a national digital asset stockpile. Fox News reported this order aims to establish a strategic reserve for digital assets. However, Peter Schiff shed light on the fact that this order is not exclusive to Bitcoin. Instead, it seeks to create a working group to advise on digital asset policy, cooperating with Congress on potential crypto legislation.
How did we get here, from a dream of decentralized financial freedom to applauding highly centralized institutions controlling vast amounts of cryptocurrency? The blatant contradiction is a testament to Bitcoin’s diminished original purpose over the years.
As we delve deeper into this evolving narrative, several critical questions arise: How did the Bitcoin community lose sight of its decentralized ideals? Can these centralized trends be reversed, or is this the new reality for cryptocurrencies? The answers will shape the future of not just Bitcoin, but the broader digital asset landscape.
Sources:
https://www.benzinga.com/crypto/2025/01/sec-rescinds-sab-121-bitcoin-custody-interpretation
https://www.cryptonews.net/news/sec-strategic-reserve-update-2025/
https://www.washingtonpost.com/news/trump-crypto-executive-order