New Money Transmitter Licensing Process Will Benefit Nationwide Firms

Streamlined Licensing: A Game Changer for Money Transmitters

In an effort to bring some order to the chaos of state regulations, the Conference of State Bank Supervisors (CSBS) has announced a shiny new policy that promises to save time and money for big operators trying to navigate the labyrinth of state licensing. The plan, announced on September 15, focuses on empowering firms that act as money transmitters in 40 or more states to operate under a single license. Yes, you heard that right—no more jumping through fiery hoops in each state!

The Road to Simplification

According to CSBS, the new licensing procedure will involve a single examination conducted by examiners from across the country. That’s right—a one-stop shop for all your licensing needs! This change is poised to benefit a notable 78 firms currently operating in the U.S., streamlining their processes significantly.

Who Will Benefit?

While the CSBS has kept their lips zipped about the specific entities involved, the representative hinted that both brick-and-mortar and cryptocurrency firms will reap the rewards of this unified licensing process. A quick peek at the Nationwide Multistate Licensing System reveals that Coinbase, for instance, is already licensed in exactly 40 states, making them one of the top candidates ready to bask in the glory of simplified regulation.

A National Calling for National Standards

This initiative hasn’t gone unnoticed; financial bigwigs, including Brian Brooks, the Acting head of the Office of the Comptroller of the Currency (OCC), have praised the move. Brooks remarked on how antiquated it is for national fintech companies to be subjected to varying regulations across each state.

“For national financial service businesses, it makes little sense to have a patchwork of regulation and supervision,”

said Brooks. He further emphasized that only a federal law could provide the uniform regulatory fabric necessary to truly modernize the industry.

Looking Ahead

CSBS also hinted that this 40-state benchmark might only be the beginning, implying that further adjustments could be made down the lane. This prospect provides a glimmer of hope for companies that may be dodging regulatory bullets across state lines.

Consumer Protection and Oversight

In a Twitter spiel, Linda Lacewell, the Head of New York’s Department of Financial Services, celebrated the potential for streamlined oversight. While she acknowledged that the industry would benefit from reduced burdens, she also emphasized the need to keep consumer protection front and center.

“States acting together can streamline oversight to reduce burdens on industry while protecting consumers and safety/soundness,”

she stated, which is inspirational if nothing else.

Timeline to Implementation

The changes promised by the CSBS are not just pie-in-the-sky ideas, but are set to take effect in 2021. So, buckle your seatbelts—this is going to be quite the ride for firms across the nation as they adapt to the new streamlined process!