Regulators in the United States are now trying to narrow down crypto regulations by implementing a single set of rules for cryptocurrency and payment services companies in a bid to make the regulatory process simpler.
A new money transmitter license now expects to save large firms from having to get separate licenses in every state. In the current system, payment services and cryptocurrency companies had to comply with individual state regulations.
According to an announcement from the Conference of State Bank Supervisors (CSBS) on September 15, the organization of state regulators has set out parameters for state licensing that implements a single exam conducted by examiners across the nation.
Payment services that operate in 40 plus states will now be able to hold a single license for all the different states. As of now, there are 78 firms of that sort in the U.S., and “Companies that are licensed in 40 or more states are automatically rolled in,” a CSBS representative stated.
While no further information about these organizations was revealed, the representative said “It includes brick-and-mortar firms, it includes cryptocurrency firms.”
Amongst crypto-based companies, Coinbase is registered in exactly 40 states, and hence will be one of the first companies within the crypto industry to receive this license.
However, the CSBS representative added:
“That 40-state threshold is where this program is starting, not necessarily where it will stay in the future.”
Brian Brooks, Acting head of the Office of the Comptroller of the Currency, told media outlet Cointelegraph:
“I congratulate CSBS and the states on recognizing what we have been saying for years that for national financial service businesses, it makes little sense to have a patchwork of regulation and supervision. While the efforts alleviate the inherent challenges facing a system based on 50 state laws and licensing regimes, only federal law and the uniform regulatory framework it provides fully addresses these issues.”
Linda Lacewell, Head of New York’s Department of Financial Services, voiced similar sentiments, tweeting:
The CSBS expects the new system will grant regulators “more insight while also freeing up state resources.”
The new regulations are set to be implemented in 2021.