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Scraped on 09/09/2025, 12:40:48 UTC
Yes that's precisely what I wrote above; that this is the traditional way of doing things. Bitcoin is innovative in this regard. Essentially, Coinbase does "self-custody" of USA's coins 
Fair point, I misunderstood the direction of the post. Well, Coinbase is a fully American company so there are less other risks involved with this. It's not a big deal though, meaning that I am more concerned that the huge majority of individuals prefer to allow CEXs to keep their coins for them.
Any reduction in CEX holdings is beneficial for everyone involved, and comes at just a small negative impact on the CEX revenue. Big holders and governments can make a significant impact on this situation by moving to real self-custody, but that comes with other risks that not everyone wants to accept.The US government can deal with Coinbase, sign a contract with Coinbase and use Coinbase as their custodian but we individually should not try to do the same. Coinbase never intend to cheat the US. government in any national contract between the US government and Coinbase. They know what to do in order to keep their business and owners safe but with non-government customers, Coinbase can do differently.
Cheat the US government directly out of its reserve? 
The chance of this happening is zero, even if there was no contract at all.Original archived Re: Congress Demand Treasury to Custody all US Acquired Bitcoin
Scraped on 09/09/2025, 12:35:22 UTC
Yes that's precisely what I wrote above; that this is the traditional way of doing things. Bitcoin is innovative in this regard. Essentially, Coinbase does "self-custody" of USA's coins
Fair point, I misunderstood the direction of the post. Well, Coinbase is a fully American company so there are less other risks involved with this. It's not a big deal though, meaning that I am more concerned that the huge majority of individuals prefer to allow CEXs to keep their coins for them.
Any reduction in CEX holdings is beneficial for everyone involved, and comes at just a small negative impact on the CEX revenue. Big holders and governments can make a significant impact on this situation by moving to real self-custody, but that comes with other risks that not everyone wants to accept.The US government can deal with Coinbase, sign a contract with Coinbase and use Coinbase as their custodian but we individually should not try to do the same. Coinbase never intend to cheat the US. government in any national contract between the US government and Coinbase. They know what to do in order to keep their business and owners safe but with non-government customers, Coinbase can do differently.
Cheat the US government? Good luck with that, it always works out really well for anyone who tries. It is a nice way to get Epstein'd.