The Conference of State Bank Supervisors (CSBS) recently took a step forward to streamline the process of licensing fintech firms operating across the US. Through the CSBS, certain state regulators announced a multi-state agreement that standardizes key elements of the licensing process for money services businesses. Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas and Washington joined in the new initiative and other states are expected to join later.
RK&O partner Vincent Basulto viewed this as a positive step, but thinks more action is needed. He recently told Crowdfund Insider that “the multi-state compact is a positive development and is an acknowledgment that the current patchwork system of regulation of Fintech companies needs to be improved. While the OCC continues to consider a possible national charter for fintech companies, the Conference of State Bank Supervisors is seizing the opportunity by supporting initiatives such as this. Nonetheless, until all or a substantial portion of states have agreed to participate in such a standardized licensing process and until there is greater reciprocity, this compact will have limited utility for fintech firms."