You Can Do Everything Right And Still Lose Bitcoin

Nathan McCauley argues that crypto regulation in the U.S. is becoming more workable even after the Clarity Act stalled, because the direction of travel is still toward institutional adoption, better custody rules, and clearer separation between exchanges and client assets. He says Anchorage built through the Biden era and kept growing, which he sees as evidence that large financial institutions now believe crypto infrastructure is here to stay.

A major theme is that self-custody is still important, but it is getting harder and riskier for ordinary users. McCauley describes a friend who lost Bitcoin despite following the usual hardware-wallet best practices, and says that pushes the market toward more institutional custody. He expects banks, exchanges, and eventually financial institutions to become the default holders of Bitcoin for many users, while self-custody remains available for those who want it.

The conversation also focuses on stablecoins, tokenization, and AI-driven finance. McCauley expects multiple stablecoins to coexist and be bridged by clearinghouse-style infrastructure. He says AI agents will need cash, card, and crypto rails, but most transactions will likely run through existing banking services rather than crypto alone. On security, he warns that AI helps both attackers and defenders, so firms need strong controls, humility, and constant investment.