A Small, But Promising, Step Towards State Money Transmitter Licensing Harmonization
The time and expense of applying for state money transmitter licenses can be an incredibly steep barrier to entry for many fintech and cryptocurrency businesses. Seven states—Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas, and Washington (collectively, “Signatory States”)—have taken an initial step to lower that barrier. They have signed an agreement (“Protocol”) aimed at expediting and simplifying the application process for money services businesses. The Conference of State Bank Supervisors (“CSBS”) announced the agreement and indicated other states are expected to join.