Watching a Trader University video got me thinking about the Bitcoin-collateralized loans. You lend your BTC to a company and you get a percentage more BTC in return. That's a bond, a kind of security. Companies offering to give you a yield on your BTC are selling unregistered securities.

Now, I'm all for ignoring unjust laws when it's safe to do so, but the people who are offering yield on BTC are not appealling to higher moral principles. They are appealing to greed (cf. you could just stack sats instead) and naivete (cf. the bonds are inherently custodial).

But the bigger issue is that nation-states will eventually realize that these yield products are unregistered securities and start fining those companies into bankruptcy. When that starts happening, you won't get any of the BTC you lent to those companies. I've heard lots of claims about how 2-of-3 multi-sig secures your lent BTC, but none of those claims address what happens when two of those signers get thrown in jail for securities fraud and all their assets get liquidated by the State.