According to comments from longtime researcher and computer scientist Nick Szabo, Bitcoin and other cryptocurrencies are trust-minimized, not trustless, and that difference matters for how states and private actors can push back.
Szabo warned that while the layer one of a strong trust-minimized system can endure many kinds of interference, legal routes remain a meaningful vulnerability.
He said financial rules are one set of risks the ecosystem has learned to handle, helped by developers and an expanding legal profession focused on crypto, but that laws tied to arbitrary data create a much wider and less predictable attack surface.
Image: Global Sign
Trust Minimized Not Trustless
Szabo told readers that the technical design reduces the need to trust single parties, yet it does not eliminate the need for trust entirely.
According to his view, losing the phrase “trustless” and using “trust-minimized” is important because it points to real limits. Developers must keep the protocol informed by careful choices.
Anarcho-capitalism is a wonderfully abstract ideal that can inspire innovation. It helped inspire me to help invent cryptocurrency.
But real-world cryptocurrencies are not trustless — they are trust-minimized. Each cryptocurrency has a legal attack surface, representing the…
— Nick Szabo (@NickSzabo4) November 16, 2025
Lawyers have become part of the defense too, he said, and that legal work has made financial law attacks manageable in many cases.
The claim is not that Bitcoin is fragile; it is that the threats are not only technical — they are real, legal, and those threats change with new laws and court decisions.
Regulators Face Practical Limits
Not everyone agrees. One critic, Chris Seedor, who runs a Bitcoin seed storage company called Seedor, pushed back and called some legal fears “boogeymen.”
Based on reports of his remarks, Seedor argued that states can try to use law to stop tools and protocols, but history shows limits.
Respectfully, I think you’re giving too much weight to speculative legal boogeymen.
Bitcoin’s resilience was never about predicting every possible domain of law – it was about minimizing technical points where coercion can bite. If regulators could shut down general-purpose data…
— Coinjoined Chris ⚡ (@coinjoined) November 16, 2025
He pointed to PGP and Tor as two technologies that have been unpopular with some regulators yet remain available. His point: when code lacks central points of control, courts and agencies have less practical leverage to fully shut it down.
Arguments From Different Angles
The debate is partly about emphasis. Szabo focuses on open legal questions and new kinds of laws that could be used to target content or arbitrary data placed on-chain. Seedor highlights how technical design can remove the lever points that make enforcement easy.
Both are talking about the same problem from different directions: one looks at the legal map and sees many untested routes; the other looks at past enforcement and sees that states rarely win against widely distributed protocols.
Featured image from Yagi Studio/Flavio Coelho/Getty Images, chart from TradingView
