Advanced
Graham McBain@mcbain
21 days ago

Feels like a lot of startups are being built on AA and MPC tech assuming that they will be treated as Non-Custodial wallets just like mnemonic wallets Are their any no action letters or guidance that says this is true? If so, awesome If not, lots of companies are squarely in the flow of funds

In reply to @mcbain
mike rainbow (rainbow mike)@mikedemarais.eth
21 days ago

not all MPC tech is the same there are certainly configurations of MPC + AA that are without a doubt noncustodial i agree many products in market today are not truly noncustodial tho

In reply to @mcbain
nicholas@nicholas
21 days ago

there's nothing custodial about AA, but you make a good point about MPC signers

In reply to @mcbain
Devin Elliot@notdevin.eth
21 days ago

As long as the customer controls the keys and their recovery then they’re self custody/non custodial Are you asking if there’s any legal precedence formalizing that?

In reply to @mcbain
Justin Hunter@polluterofminds
21 days ago

I’ve been wondering this a lot too. In 2019 I started a company where we built a similar experience but we were told by many lawyers that we would be considered custodial and would need a money transmitter license. 🤷

In reply to @mcbain
Colin Johnson@cojo.eth
21 days ago

Would love to have a live, public chat with a lawyer about this 👀

In reply to @mcbain
Brent Fitzgerald@bf
21 days ago

If you squint, with social login AA you're kinda sorta forcing some custody on the social login provider.

In reply to @mcbain
Cassie Heart@cassie
21 days ago

MPC: If all key shards are held by the startup, it's custodial, regardless of what they're saying (and a lot are outright lying). If some key shards, but not all are held by the startup, it's effectively non-custodial provided the authorization and interactions are controlled by the majority shard holder.

In reply to @mcbain
dcposch.eth@dcposch.eth
19 days ago

Not a lawyer but I think the following questions are clarifying . Regardless of tech details, 1. Can the user transact without company permission? 2. Can the company transact (user funds) without user permission?