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Does Multi-Institution Custody Protect Against Executive Order 6102?
Jackson Mikalic | Head of Business Development
May 4, 2025
In 1933, President Franklin D. Roosevelt issued Executive Order 6102, requiring all U.S. citizens to turn in their privately held gold to the government. It was an unprecedented act of financial seizure, backed by the threat of fines and imprisonment. To this day, it remains one of the most cited examples of government overreach among the Bitcoin investment community.
Roughly 25% of privately held gold was ultimately confiscated, meaning the vast majority, approximately 75%, remained in private hands. Much of what was seized came from centralized bank vaults, where enforcement was swift and centralized. It was easy to identify, access, and seize.
Naturally, one of the first questions people used to ask about Bitcoin was: “What if the government bans it?” The more nuanced version of that question that remains today is: “What if the government enacts something like Executive Order 6102—again?”
So, could this happen with Bitcoin?
Technically, yes. Any government could issue a similar directive targeting Bitcoin ownership.
But Bitcoin is fundamentally different from gold: it’s digital, borderless, and much harder to centrally confiscate. That said, your level of protection against this potential threat vector depends on how your Bitcoin is secured and whether you’ve introduced centralized risks that resemble the vulnerabilities of 1933.
The weakest protection in a 6102-style scenario would be Bitcoin held at centralized custodians or exchanges, especially those managing pooled customer funds with unilateral control. Coinbase is a clear example; it custodies more than 2 million BTC on behalf of its customers (approximately 10% of the Bitcoin supply), and its centralized structure would make it an easy target.
Where does multi-institution custody fit in?
Multi-institution custody (MIC) wasn’t designed to circumvent legal authority. It was designed to eliminate single points of failure, such as one custodian in one jurisdiction having unilateral control over your Bitcoin.
While MIC does not fully safeguard Bitcoin ownership against a 6102-style decree, it makes rushed, unilateral seizure far less feasible.
When you custody Bitcoin with Onramp:
- Your Bitcoin is held in a segregated vault (not commingled with other clients)
- It is secured by three independent institutions, none of which control your Bitcoin
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