You see all of these small banks and credit unions with 1-5 branches in total, what prevents them from getting into this business? Or facecash doing something similar? Get silicon valley bank involved as an investor/backing bank or some other small bank?
Nothing stops them from doing this. What they're upset about is that there is no regulation that says "if you raise X x $1MM, you will receive a money transmitter's license"; they'd like to do it on their own.
