Unethical fractional-reserve practices endanger everyday citizens—especially those holding Bitcoin indirectly through ETF products—by exposing them to hidden leverage and potential defaults. A ban on rehypothecation prevents custodians from secretly encumbering depositor assets, preserving Bitcoin’s promise as a secure, finite store of value even for uninformed people not choosing to hold their own keys.

ego death capital raising $100 million Fund II to accelerate the Bitcoin ecosystem

The article on egodeath.capital critiques FinCEN's policy proposal FINCEN-2023-0016, highlighting its potential infringement on rights, including unreasonable searches, free speech, financial privacy, due process, information security, non-discrimination, and access to financial services, urging public action against this overreach.

No longer can the strategy be to build network effects and then monetize the monopoly power. Now, businesses will need to make revenues as a function of the value they provide to a user. If they create value for a user, they will be able to capture a small portion of that value in the form of revenue. If they try to take too much, people will switch to another app. If they don’t provide enough value to a person, that person will simply switch.