Joshua

🚨NEW: This morning, @RepYoungKim and @RepLiccardo unveiled the bipartisan PACE Act to create a national payments license for fintechs and crypto companies. The bipartisan bill would let regulated state depository institutions and credit unions that conduct money transmission be regulated under a new optional framework overseen by the @USOCC. This bill would permit these institutions to access Federal Reserve payment services, aligning with Federal Reserve Governor Christopher Waller’s “skinny master accounts” concept, which @krakenfx gained access to earlier this year. The bill also gives the Federal Reserve Board, and not the individual Reserve Banks, final decision-making authority over skinny master account applications. It also looks to reduce costs for consumers, who often end up paying fees passed down layers of banks just to access ACH. “We can reduce the burden of bank fees borne by too many American families by enabling broader access to innovative payment systems that deliver cheaper, faster, more reliable service,” said @RepLiccardo. “I’m proud to partner with Young Kim on this bipartisan PACE Act, to modernize our payment system for the benefit of millions of cash-strapped Americans.”

OCC compliance is vastly more expensive, demanding, and complicated than MTL compliance. There are benefits but for many it will be vast overkill. Source: I worked at MTL-licensed entities... and @jpmorgan

I'm going to make a prediction that will shock many of you: Going forward, for at least the next few years, MTL licensure in the US will be obsolete. And everyone who has a litany of MTLs will feel the compliance burden of an outdated vehicle they bought and paid for. In it's place will be the occ bank trust charter (which is not the same as a depository bank charter like you'd interact with at JP morgan). The bank trust charter will turn into a kind of federal crypto license. You've seen over the last few months many conditional or full approvals for bank trust. @stablecoin, @coinbase, @bitgo, @nubank, etc That will be the new norm. Bookmark this post.

I'm going to make a prediction that will shock many of you: Going forward, for at least the next few years, MTL licensure in the US will be obsolete. And everyone who has a litany of MTLs will feel the compliance burden of an outdated vehicle they bought and paid for. In it's place will be the occ bank trust charter (which is not the same as a depository bank charter like you'd interact with at JP morgan). The bank trust charter will turn into a kind of federal crypto license. You've seen over the last few months many conditional or full approvals for bank trust. @stablecoin, @coinbase, @bitgo, @nubank, etc That will be the new norm. Bookmark this post.

The CLARITY Act will be a huge milestone for crypto and a huge achievement for @realDonaldTrump. I was championing a similar bill to get crypto out of Gensler's hands when Gensler helped Biden's DOJ put me behind bars. financialservices.house.gov/news/documents…

"Think of it as the opposite of HSBC. They were banking the cartels, desperately trying to avoid government interventions that would make that clear to the public markets." @PalmerLuckey explains how Erebor is different from every other bank: "Put Erebor at the other end of that spectrum." "There are a lot of banks that — whether they are good or bad people is irrelevant — you might have good people who nonetheless are very beholden to European markets, Chinese markets, other foreign markets that they need to keep happy. Either because they want to keep them happy to make money, or because they don't want their executives in those jurisdictions to get arrested." "Erebor is taking a very different approach. We're an American company, we're an American bank, that supports American companies, and we will comply with US law, but we will not comply with spurious rulings from people who have no real jurisdiction or authority over us. And you'll have a very hard time finding a bank that takes that position. I'm not aware of any other than us."

1/ For over a year, fintech startup TomoCredit has continued selling a credit-boosting product (charging up to $1K per subscription) that’s highly misleading and rarely works, because the credit bureaus no longer accept its data. The customer stories are disturbing: forbes.com/sites/jeffkauf…