State Regulators Seek Comments on Model Language for Multistate Licensing Legislation

Last week, the Conference of State Bank Supervisors (CSBS) released draft language for model payments legislation that would make it easier for fintech companies to operate between states. 

Nearly half of all state regulators have agreed to harmonize their regulations regarding processing licenses for money transmitters and money-services businesses. CSBS hopes to have all states agree to this effort by next year. 

“This model law is a key component of the states’ work under Vision 2020 to create a modern nonbank licensing and supervision framework,” said John Ryan, president and CEO of the bank supervisor group. “A 50-state law for money transmission offers nationwide consistency for companies, access to innovative financial products for citizens and more effective supervision by state regulators.”

Despite CSBS making progress on this front, the trade association has failed to halt the Office of the Comptroller of the Currency’s (OCC) fintech charter. A judge dismissed their legal challenge since no fintech firm had officially applied for the special charter. Nonetheless, a separate suit by New York’s Department of Financial Services against the OCC remains pending. 

CSBS is seeking comments on its draft model language. Those interested can submit comments here. Comments are due by November 1.