On September 9, the Conference of State Bank Supervisors (CSBS) released the Uniform Money Transmission Modernization Act as part of states’ “broader effort to modernize the state financial regulatory system.”
The Act seeks to replace 50 sets of state-specific money transmitter laws and rules with one single set of nationwide standards and requirements. The Act would simplify the licensing regime for companies (i.e., MSBs) that offer digital wallets, prepaid cards, money orders and cash or virtual currency transmissions. While this approach is responsive to industry demands for rationalization of an extraordinarily cumbersome licensing process, the Act would still need to be adopted by each individual state.
