Founders

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

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.

BDFL of Quilibrium, Eng @ Farcaster, ex-Coinbase, always opinionated, never hydrated

/quilibrium

Multisig wallets are the only thing that's been tested in court already, and the determination follows this line of thinking above.

AA: Totally implementation dependent, but similarly a _lot_ of startups are lying about being non-custodial by saying the controlling keys are "in a hardware enclave owned by AWS"

MPC is really hard. MPC that's actually decentralized is _really_ hard. I've been working on iterations of Q for six years at this point and didn't even get to the first stage of launch until earlier this year, albeit for the first five it was fully solo and only in spare hours.

This makes a lot of sense

And I think you’re right and that a lot of people may be partaking in a little “MPC Theatre”