“Thus, until Federal Reserve Banks possess discretion to disclaim or reject a grasp account utility, state chartering legal guidelines could be the one layer of insulation for the U.S. monetary system,” the choose wrote. “And in that state of affairs, one can readily foresee a ‘race to the underside’ amongst states and politicians to draw enterprise by decreasing state chartering burdens via lax laws, permitting minimally regulated establishments to achieve prepared entry to the central financial institution’s balances and Federal Reserve companies.”
