A new regulatory approach aiming to reduce the compliance costs incurred by crypto and fintech firms in the country will be unveiled today by the US Conference of State Bank Supervisors (CSBS), according to a report by news outlet Reuters.
Authorities have agreed upon electing a group of examiners from across the US to handle all license grants. This would allow them to jointly supervise a business instead of each individual state having its own committee, the report said. In all, over 48 states regulators agree to follow the unified framework.
With the move, over 78 companies operating in the crypto and fintech sectors—which together transact over $1 trillion annually—will be able to expand more easily across the US and see vastly reduced compliance costs.
John Ryan, the president and CEO of CSBS, said the new approach will be more efficient than previous practices but just as robust. “The states aren’t giving up authority. They’re realizing efficiencies by sharing information,” he said.
Ryan added that states will be able to share information from the exams, and each state will reserve the right to launch independent examinations if they wanted.
The rules came as state regulators and financial bodies recorded complaints from crypto and fintech firms about the complex and time-consuming method of following state by state regulatory compliance for operating a business in the US. This meant a single firm needed to gain over 40 licenses to operate in the US alone.
Cryptocurrency businesses, which typically had to be licensed state by state, were particularly vocal about the problem, the report noted.
But those woes are a thing of the past now.