NEW YORK — Financial regulators in New York and Wyoming have agreed to coordinate oversight of cryptocurrency and other digital asset businesses, including expedited reviews for some licensing applications and potential joint examinations and enforcement actions, according to a memorandum of understanding between the states.
The agreement links the New York State Department of Financial Services and the Wyoming Department of Audit’s Division of Banking. It covers businesses operating or seeking to conduct digital asset activities in either or both states.
Under the agreement, a business licensed or chartered in one state may qualify for expedited review in the other if it has operated under its existing regulator’s oversight for at least three years and is not subject to an enforcement action.
What Regulators Have Planned
Regulators will compare the proposed business models and operations in both jurisdictions. If they are sufficiently similar, the prospective regulator will expedite its review, contingent on receiving all requested historical examination information.
For qualifying applications, regulators will aim to reach a final decision within six months of the application date or receipt of the historical examination information, whichever is later, according to the MOU.
The agreement also calls for sharing application analyses and coordinating reviews when a business or affiliated businesses seek licenses or charters in both states. Regulators will confer to align licensing decisions where possible under their respective laws and authority.
Goal is to Seek Coordination
For businesses overseen by both agencies, regulators will seek to coordinate examination schedules and conduct joint examinations when practicable. They may issue joint examination reports or separate, coordinated reports.
Each agency will also seek to notify the other when it reasonably believes a jointly regulated business may face enforcement action. They may share investigative information and pursue enforcement jointly, separately or in coordination, according to the agreement.
The MOU establishes confidentiality protections for shared nonpublic information, restricting its use and disclosure while allowing compliance with legally enforceable orders.
The agreement preserves each agency’s existing authority and discretion over information sharing and does not create enforceable rights for businesses or other third parties.
Either agency may terminate the agreement with 30 days’ written notice. Confidentiality requirements for previously shared information would remain in effect.
