New York and Wyoming partner on digital asset licensing

The New York State Department of Financial Services (NYDFS) and the Wyoming Division of Banking have signed a memorandum of understanding (MOU) to coordinate the licensing and supervision of digital asset companies. The agreement aims to facilitate information sharing regarding inspections and licensing processes for bank and trust companies, as well as New York’s BitLicense.

Under the agreement, companies that have operated in both states for at least three years without regulatory violations and possess business models substantially similar to previously approved entities may qualify for expedited review. Regulators aim to reach licensing decisions for such companies within six months. While the agreement enhances supervisory efficiency, it does not unify regulatory standards or grant automatic approval across state lines.

This state-level cooperation occurs as the federal Office of the Comptroller of the Currency (OCC) expands national trust company charters for digital asset firms, including companies like Ripple, Circle, BitGo, and Paxos. This expansion has faced pushback from traditional banking groups, such as the Independent Community Bankers of America (ICBA), who argue the OCC is overstepping its authority. Additionally, the OCC expects to release final rules for the GENIUS Act by late October, which will address stablecoin reserves, redemption, and risk management standards.