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.

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.