Brokers don't have to take on any margin lending risk at all if they don't want to. My 401(k) broker won't let me invest on margin. Brokers benefit from the i

Brokers don't have to take on any margin lending risk at all if they don't want to. My 401(k) broker won't let me invest on margin. Brokers benefit from the increased percentage fees on trades so want to find the optimal risk/reward margin limits. Maybe part of the problem is conflating brokers and exchanges in typical cryptocurrency setups. Brokers offer margin accounts and exchanges offer settlement between parties and take no real risk.