Money services businesses were given a reprieve last week that will make cryptocurrency businesses very happy as they will be able to grow more easily across the United States. The Conference of State Bank Supervisory Authorities (“CSBS”) – 48 state regulators – has agreed on a regulatory system for money services activities, comprising a single set of supervisory rules and a review program conducted by state regulatory authorities.
The new regime applies to nearly 80 major payments and cryptocurrency companies, doing business over $ 1 trillion a year. In recent years, state regulators have worked together to address complaints that the state-by-state surveillance system is redundant and too cumbersome. Cryptocurrency companies are generally state-by-state licensed, but under the new agreement a group of state reviewers will jointly oversee a company, rather than individual states. This approach should be more efficient, with States sharing information; however, states can still conduct independent reviews.
In short, this new regime should make it easier for cryptocurrency businesses to operate. However, seasoned advice is still needed to manage this new path for cryptocurrency businesses.