In an effort to make money transmitter regulations consistent across the country, Financial Innovation Now (FIN) has urged the Conference of State Bank Supervisors (CSBS) to work with Congress to ensure a unified federal regulatory system.
And the fact that FIN is representing some of the market’s most notable global brands only serves to add fuel to a fast-burning fire. As previously reported, Amazon, Stripe, Google and Square are just a few of the credible names backing this organization.
The CSBS moved the effort to create uniformity among state regulations forward with plansto address issues concerning the nonbank entities supervised at a state level, including a “50-state model MSB law” to target the standardization of money services businesses (MSB) licensure.
And FIN most recently responded with their support and encouragement.
Of the various issues citedin their response letter to the CSBS, FIN highlighted non-bank financial service providers being underrepresented and underserved in our current model as one of their pain points – along with inconsistent state laws around money transmission that result in “uneven customer protection.”
As for this most recent initiative to encourage CSBC and Congress to work in tandem to accomplish the goal, FIN quotesExecutive Director Brian Peters regarding their request for forward motion in their press release:
“FIN strongly commends the Conference of State Bank Supervisors and state regulators for their efforts to modernize and harmonize the regulation of money transmission. FIN believes that a federal mechanism is necessary to ensure consistency among the states, particularly for firms operating at national scale. FIN respectfully urges CSBS and the task force to continue developing a model payments law and simultaneously begin working with the U.S. Congress on legislation that would help ensure uniform adoption and implementation throughout the states. Given the history of inconsistencies in state regulation, now is the time to ensure all U.S. consumers have adequate protections and access to new services under a modern regulatory regime appropriate for the 21stcentury.”