The days of U.S. crypto firms navigating a patchwork of laws across state lines may soon be at an end with regulators agreeing to a unitary legal architecture.
News of the streamlined regulatory framework comes as Federal lawmakers are examining bills aimed at advancing America’s interest in the emerging cryptocurrency and blockchain landscape.
Reduced Compliance Costs for Large US Crypto Firms
According to Reuters, financial regulators in 48 states have acceded to a unitary set of supervisory rules for crypto and fintech firms. The new regulatory regime covers 78 payment companies, including PayPal, Western Union, and cryptocurrency businesses.
As part of the new plan, the Conference of State Bank Supervisors (CSBS) will deliver a single licensing framework for money services firms.
Regulators from a few states will also oversee licensing and compliance oversight activities. The new licensing program will include elements that focus on cybersecurity and anti-money laundering (AML).
With a unified licensing scheme in place, U.S. crypto firms will no longer have to deal with the previous clutter of regulations across the different states. The new framework will reportedly also provide a significant reduction in the cost of compliance burden for crypto firms.
Apart from cost savings, large U.S. crypto firms may now find it easier to pursue expansion plans across the country. As previously reported by BeInCrypto, many states had previously developed their own rules, some of which were not crypto-friendly.
For CSBS President John Ryan, the move does not erode the authority of individual state regulators. Instead, Ryan argues that states stand to benefit from adopting a culture of information sharing.
According to a press release issued by the CSBS, the agency remarked that a single licensing approach would also help to free up state resources.