I'd throw out that if attempting to make analogies to crypto - as I understand it - the standard US bank has pretty specific rules, reporting and audits w.r.t.

I'd throw out that if attempting to make analogies to crypto - as I understand it - the standard US bank has pretty specific rules, reporting and audits w.r.t. how high the ratio of L2 to L1 can go and to whom/how/what uses the L2 money can be the loaned out. The crypto exchanges do not have any such rules, reporting or auditing requirements and can self-report as L2 but in fact be some custom self-defined push the boundaries of acceptability Layer (a la FTX advertised as L2 but loaning the customer balances to its Alameda Research "hedge fund" partner).