Maybe will they try to pretend that the federated sidechain is decentralized enough? So no one holds the funds...
Doesn't matter how decentralized it is. They are acting as an exchange betweent one coin BTC and another LBTC. Even if no fiat is involved it still falls under FINCEN.
Wait, exchanges are the one that buy/sell LBTC to users, right? Nodes in the federated side-chain will be like miners. I have no idea about legislation anyway.
