Financial regulators from 49 U.S. states have agreed on a plan for consolidating digital currency licensing compliance, in a move that is set to make it easier for firms to operate across states under the same compliance obligations. According to the Reuters report, members of the Conference of State Bank Supervisors agreed to a plan for a new regime for money services businesses, which would introduce a standard ruleset for companies operating throughout the block, covering 49 U.S. states, Washington D.C. and Puerto Rico.
Firms are required to apply for licenses for each state.
Under existing legal structures, firms are required to apply for licenses for each and every state they plan to operate, creating multiple timely and costly compliance requirements—both in terms of securing initial licenses and ensuring ongoing regulatory compliance. However, under the new proposals, a single system of regulation means firms will have only a single set of rules to adhere to, streamlining securing and adhering to money business licenses.
The proposed regulations would be more efficient for firms.
CSBS President and CEO John Ryan said that the new model for regulation would be every bit as rigorous as the current state-level frameworks, but it will be more efficient as a result of standardization. The details of the new regime are expected to be published shortly. It is expected that the move will be welcomed by money services businesses operating in the cryptocurrency sector, including the likes of Coinbase, who will benefit from a single set of compliance rules for operating throughout participating U.S. states.
Crypto regulations in most countries are still in a grey area, but since Facebook announced its Libra project, many countries have made changes to regulate the crypto sector.