I tend to agree. But if there’s one thing I’ve learned is how creative startup lawyers get when it comes to pushing terms like “non-custodial” to bend the rules. I’m not saying it’s right. I personally disagree with this practice, since it does not clearly communicate counterparty risk to customers. I’m just observing this is how a significant part of the industry keeps the lights on, especially Lightning startups.
Discussion
Sure, creative lawyers are great, but my note was this doesn’t scale, not that it can’t be done. After a certain scale creative reinterpretations of the law results in jail time :(
I am also baffled at the naivety of some founders who are taking personal risks like that. But that’s their decision. The optimist in me does hope the laws will adapt to allow legal use of ecash one day, preferably issued by trusted/local community banks. Perhaps after a period of financial repression, where privacy is less of a threat.