from Balaji | by Balaji

Now this is interesting! State-chartered banks could operate without Fed approval. You'd have to get into the guts of clearing and settlement, but perhaps states like Florida and Texas could keep the rails open even if the Fed wasn't very happy about it. t.co/oUAqrgQ3ck

The 10th Amendment is back. States have been reasserting control. They've been diverging left & right from fedguv. And this might be the next step. DeSantis might dare the Fed to cut off Florida banks. Likely too big even for the Fed. They'd blink... t.co/E10DdX4Glx

If they didn't like Florida crypto, the Fed could in theory try cutting off FedWire/ACH/SWIFT/CHIPS/RTP/etc access to Florida banks. Some of those it runs itself, some via partners. But doing that would prove how totalitarian FedNow or a CBDC would be... t.co/HTEpejyIPC