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US-based money services businesses, including cryptocurrency companies, will soon be able to enjoy trimmed down regulatory processes. The Conference of State Bank Supervisors (CSBS) reportedly plans to unveil a new joint group of state regulators that will oversee all licensing.
Simplified Regulation Processes For Crypto Firms In The US
According to the Reuters report, the CSBS will unveil the new plans today after 48 state regulators had agreed to introduce a single set of supervisory rules. Until now, payment services and cryptocurrency companies had to comply with dozens of individual state regulations.
The new simplified format will apply to 78 such firms. A CSBS spokesman told Reuters that they move over $1 trillion annually combined. The implementation of the joint group of state regulations will facilitate operations across multiple states.
CSBS’s CEO and President John Ryan believes that the new initiative will provide further opportunities for businesses operating in the US to enhance their services. At the same time, it will work just as safely as the old regime. He added that the “states aren’t giving up authority. They are realizing efficiencies by sharing information.”
However, Ryan asserted that while the states will indeed share information from the exams, each state will reserve the right to launch an independent examination if regulators deem necessary.
Crypto and Fintech Firms Fought This
The new approach comes after numerous complaints filed by cryptocurrency and fintech companies trying to solve the issue of having a state-by-state supervisory system, which delayed each licensing.
As such, the CSBS started testing a few approaches to establish what could work best. The regime described above gave promising results from the start, which led to creating a pilot program last year.
Rosemary Gallagher, an associate counsel for one of the companies affected by the new regulatory regime Western Union, participated in the pilot. She said that her firm previously had to comply with “dozens of individual state exams,” and Western Union expected the process to be faster now.
Additionally, she noted that the new approach would significantly reduce the burden for each state.