New York and Wyoming agree to coordinate crypto supervision

Two of the best-known state crypto regulators have agreed to work together. New York's Department of Financial Services and the Wyoming Division of Banking signed a memorandum of understanding on October 1 to coordinate oversight of virtual currency firms.

According to a summary by the law firm Lowenstein Sandler, the agreement has three working parts. Firms with at least three years of clean operating history get fast-track licensing. The two agencies will coordinate their examination schedules. And where it is practical, they will examine firms jointly.

The pairing is notable because the two states built different regimes. New York has the BitLicense, long regarded as one of the most demanding licenses in the sector. Wyoming created the special purpose depository charter. A firm in good standing under one now has a shorter path into the other, and a firm supervised by both should face less duplicated work.

The timing matters too. Federal agencies are writing national rules for crypto, and Treasury has just set the terms on which state stablecoin regimes can be certified. By pooling their supervision, New York and Wyoming are making the case that state regulators remain a credible home for these firms. The agreement has an obvious way to grow, which is for other states to join it.