The Conference of State Banking Regulators (CSBS), which was attended by representatives of the states and territories constituting the United States, adopted a new framework for regulation of financial companies. The innovations will affect cryptocurrency startups as well.
Regulators in nearly every state in the US (except Montana) have agreed on uniform rules for financial services companies. They will help reduce the cost of regulatory compliance and facilitate entry into the US market. The new regulatory regime will allow financial companies, including blockchain startups based on distributed ledger technology, to obtain only one license, which will allow them to operate in all states. Previously, the process for obtaining licenses was separate for each state.
The goal of the new regulatory framework is to guarantee compliance with anti-money laundering regulations and cybersecurity requirements.
MSB’s Networked Supervision initiative will expand to 78 of the nation’s largest payment and cryptocurrency companies, which collectively move more than $1 trillion in customer funds per year. State regulators have been developing a new legal framework over the years. As a result of the conference, a commission with representatives of several states will be formed, which will deal with the activities of the respective companies.
CSBS CEO John Ryan stated the new method will be as effective as ever, but even more so. States will exchange the results of their reviews, and each of the constituents will have the opportunity to conduct further independent inspections if necessary.
The adopted regulatory regime will affect companies such as Ripple, Coinbase, Western Union, and PayPal, reduce the burden on individual states and attract the best talent to participate in the commission.
