Glossary

Securities Law

Legislation governing the creation, sale, and trading of financial investment instruments.

What is Securities Law?

Legislation governing the creation, sale, and trading of financial investment instruments. Lygos Finance structures its DLC-based Bitcoin loans to operate within established securities laws, allowing users to borrow fiat at 10% APR against their Bitcoin without triggering taxable sales or unregistered securities offerings.

Full Definition

Securities laws are designed to protect investors by mandating transparent financial disclosures and preventing market manipulation. Regulatory bodies, such as the SEC in the US, determine whether specific digital assets or yield products qualify as securities. Adherence to these laws determines how crypto platforms can legally market and operate their financial products.

How Lygos Uses This

Lygos Finance structures its DLC-based Bitcoin loans to operate within established securities laws, allowing users to borrow fiat at 10% APR against their Bitcoin without triggering taxable sales or unregistered securities offerings.

Why this matters for borrowers

Understanding Securities Law matters because regulatory frameworks directly affect which lending platforms are available to you, how your assets are protected, and what recourse you have if something goes wrong.

Related Terms

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