Michael Saylor’s recent comments on Bitcoin self-custody have sparked considerable debate within the cryptocurrency community.

In an interview, Saylor suggested that relying on large financial institutions—often referred to as “too big to fail” banks—could be a safer option than individual self-custody, which he argued increases seizure risks, particularly when managed by non-regulated entities.

He referred to self-custody advocates as “paranoid crypto anarchists,” contrasting with his past support for self-custody as an essential feature of Bitcoin’s decentralization.

Many in the Bitcoin community reacted sharply, noting that self-custody remains a core principle of Bitcoin’s ethos.

Saylor: "People Voluntarily Turned in their Gold" in 1933.

Reality: The penalties for non-compliance were severe:

Fines: Individuals who failed to comply with the order faced a fine of up to $10,000 (equivalent to about $220,000 today, accounting for inflation).

Imprisonment:…

— Fred Krueger (@dotkrueger) October 22, 2024

In 1933, under Executive Order 6102, President Franklin D. Roosevelt mandated that Americans turn over most privately held gold to the Federal Reserve. While the policy was labeled as “voluntary,” the penalties for non-compliance were severe.

Violators faced fines up to $10,000—equivalent to approximately $220,000 today—or up to ten years in prison. Additionally, any hoarded gold could be seized by the government, aiming to prevent hoarding and stabilize the U.S. economy during the Great Depression.

Although some gold, like jewelry and small holdings under $100, was exempt, the government absorbed a significant amount of gold from citizens, compensating them at $20.67 per ounce—well below the value set in 1934 when the price was raised to $35 per ounce, increasing reserves substantially​.

The Federal Reserve used these new reserves to increase the money supply, which aligned with Roosevelt’s Keynesian approach to stimulate the economy through monetary expansion.

However, reports indicate that around 75-80% of individuals may have ignored the order, continuing to hold private gold. This order, and the subsequent Gold Reserve Act of 1934, marked a pivotal shift, transforming gold from currency to a commodity, reinforcing the Federal Reserve’s control over monetary policy while effectively suspending the gold standard​

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