Thread by @BigWhiskey_10

#Telfam
The #MWC23 page on the @telcoin website included an interesting bread crumb that may clarify the path the company is taking with the Federal Reserve.
Read on..

$TEL #Telcoin

2) As far as I can tell, this is the first time they have used the language ‘Fed-Chartered’, which is different from being approved for a Master Account with the Fed, or approved for ‘Federal rails’ as Rajesh had stated previously.

$TEL #Telcoin

3) This new language opens up a wide range of possibilities and insight to consider. Let’s dive down the rabbit hole.

$TEL #Telcoin

4) As I think I mentioned in one of the previous threads, Anchorage Digital Bank staked their claim as the ‘First Ever Federally Chartered Digital Asset Bank’; HOWEVER, that's not the 'whole grail' for Fed approvals.

$TEL #Telcoin

blockchtainassoc.medium.com/anchorage-beco…

5) Federal Charters are handed out by the Office of the Comptroller of the Currency (OCC), an independent bureau of the U.S. Department of the Treasury. Not the Federal Reserve.
occ.gov/about/what-we-…

$TEL #Telcoin

6) For Anchorage, it essentially means they entered under 'Federal' oversight, via the OCC, as of Dec 2020. It does not provide them any additional access or permissions as a company. And it does not place them under the direct oversight of the Federal Reserve.

$TEL #Telcoin

7) So what does this mean for @telcoin?

IMO, if the new language means anything (it very well may not), IN ADDITION TO their application for a Fed master account, they are pursuing a Fed-Charter with the OCC as a more attainable first step given the FTX fallout.

$TEL #Telcoin

8) Which makes Anchorage Digital the closest known Crypto Bank competitor that is also seeking a Fed Master Account (now that Custodia and Kraken have effectively been eliminated from contention).

$TEL #Telcoin

9) If we look for potential advantages @telcoin may have over Anchorage in terms of the race to be ‘The First Crypto Bank to join the Federal Reserve’ (or some headline along those lines), we can speculate around a few:

$TEL #Telcoin

10) FIRST - @telcoin bought shares in a Nebraska State-Charted Member Bank of the Federal Reserve. Meaning a bank that already has a Master Account with the Federal Reserve and is therefore already regulated by the Fed, rather than the FDIC/OCC.

banks.data.fdic.gov/bankfind-suite…

$TEL

11) This IMO is significant for a couple reasons:

(here's the link Paul's tweet:

https://twitter.com/TelcoinPaul/status/1521520492284301312?s=20

)

$TEL #Telcoin

12) a. It means a State Member Bank of the Federal Reserve, that has to deal with the most rigorous Fed reporting requirements, vouched for the financial integrity and most importantly, the risk-management structure when it comes to customer funds, of @telcoin.

$TEL #Telcoin

13) b. If the amount of shares purchased by @telcoin was 25% or more, it would make them a ‘Bank Holding Company’ by definition (since they were already a chartered bank themselves).

$TEL #Telcoin

14) According to the the ‘Bank Holding Company Act of 1956’, they would then be required to “register with the Board and submit to supervision”. Additionally, the transaction itself may have triggered a filing with the Fed and a subsequent review.

$TEL

tinyurl.com/bddwnms3

15) So essentially, what I’m suggesting is they are doing everything they can to position the company under the direct supervision of the Federal Reserve, and by doing so...

$TEL #Telcoin

16) ...they may have a better chance to qualify for the more forgiving Tier 2 of the master account review process.

$TEL #Telcoin

federalreserve.gov/newsevents/pre…

17) SECOND - Anchorage Digital Bank National Association is Fed-Charted to offer custody and settlement services for customers; HOWEVER, as their website states clearly: “Anchorage Digital does not engage in the offer, sale or trading of digital assets.” anchorage.com/insights/the-b…

18) They do have a separate LLC where they offer those services (Anchorage Hold, LLC), but that entity is not included in the Fed-Charter. So in other words, besides the race to be the first Crypto bank member of the Federal Reserve, they may not be an actual competitor of $TEL.

19) THIRD - Anchorage Digital had an action taken against them by their regulators. They received a Cease & Desist order from the OCC, for "engaging in violations of law and regulation, including 12 C.F.R. § 21.21 (Bank Secrecy Act/anti-money laundering (BSA/AML).

$TEL #Telcoin

19) That certainly doesn’t help their case for a Master Account, right? occ.gov/static/enforce…

20) So look, this is not financial advice. I’m not a banking expert. All of this could be completely inaccurate. If anyone out there in the #Telfam is, it would be great to get your opinion. BUT if I'm even in the ballpark? $TEL is going to be a juggernaut.

Period.

#Telcoin

Yikes *Holy Grail