Within that context, he alluded to differences in their approach compared to other banks (without mentioning names) so I think it’s safe to assume that the other banks applied to the Fed as “de novo’ banks.
SECOND - he alluded to important differences (aka improvements) that they made with the Financial Innovation Act in Nebraska compared to the first charter that was written in Wyoming.
THIRD - he spoke about how closely the regulators examine companies - that they read through Twitter for example - and therefore, why it’s so important to keep a low profile and be humble about it.
We’ve seen the other crypto banks put out tweet storms and strongly worded interviews criticizing and even claiming corruption of the Fed. Two have ongoing litigation against the Fed.
So in other words, @telcoin:
a. Had the foresight to partner with an existing state-chartered member bank of the Fed (Battle Creek) to help build their credibility & trustworthiness.
...they’re continually involved with regulators at both the State and Federal level helping them craft stronger legislation that will protect consumers and minimize systemic risk to the system.
c. All the while, they have stayed low key and kept it classy throughout the Fed application process. They’ve gone so far underground, the #telfam community has resorted to attacks on the team & each other.
With all that said, the question now is will it be enough? When their application pops up on the Fed’s agenda for deliberation, will it be a swift denial or a conditional approval?
It’s important now to see the bigger picture here, #telfam. As Parker said, “it takes time and conscientious effort”. Government is slow and the level of detail required is extraordinary.
Without a doubt, it’s clear that @telcoin has played the long game and given themselves the BEST possible shot to become the FIRST Crypto Bank member of the Fed.
#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..
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.
#telfam The more I read up on it, the more it seems that the timing of @telcoin's Federal approval hinges on the outcome of the Custodia case against the Fed.
So let's get into the weeds on that. Read on:
2) The latest news is U.S. District Court of Wyoming Judge Scott Skavdahl ruled this past Friday (11-Nov) that Custodia’s case warrants a trial. bankingdive.com/news/custodia-…
3) The Fed argued that the 2 year delay in approving Custodia is not unreasonable because digital asset banks “present substantial risks and complexities requiring careful and diligent review.”
2) Firstly, a point of clarification: Regarding who would ultimately stamp the approval of @telcoin's master account with the Fed - The Federal Reserve Bank of Kansas City overseas that part of the country. federalreserve.gov/aboutthefed/fe…
3) However, the CEO of Fed Bank Kansas is a member of the FOMC so it would be hard to imagine the overarching ‘Board of Governors’ isn’t involved in the decision, given the spotlight on it.
2) It seems the Federal approval that @telcoin is seeking is not from the FDIC. In fact, they might not have any interest in that at all (yet), as I had thought.
3) That much was stated plainly by @telcoin's attorney (Mark) during a Nebraska hearing all the way back on Feb 23, 2021. Here’s the transcript from that hearing. It's fascinating to hear Mark and Paul (CEO) talk about all of this: nebraskalegislature.gov/FloorDocs/107/…
#telfam I don't usually do this but what we heard this week confirms for me what I had hoped was happening behind the scenes at @telcoin. This is by no means financial advice. I’m just tired of the BS out there - good and bad. Read on:
2) Here's what I've gathered (and some speculation to consider):
Telcoin LLC (@telcoin) is a blockchain tech start-up founded in 2017. It’s a real company run by real people, with actual licenses all over the world.
3) During the previous bear market, they completely overhauled the company and its original staff, including 1 of the 2 original founders (though the community has suspicions that he’s still lurking around and (IMO) seems to be collecting a royalty percentage).