How US states regulate crypto businesses differently
US states regulate crypto businesses differently through crypto-specific licenses, money transmitter laws, or no regime at all. Enforcement varies too.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20262 min readFact-checked
On this page
- New York's BitLicense covers custody, exchange, and transmission.
- Wyoming offers a special-purpose charter for crypto banks.
- Regulators fine unlicensed crypto activity.
Comparing them means naming the activity and the states where customers live.
What do you need before you start?
Money transmitter laws generally apply when a business transmits customer funds. Custody alone may or may not trigger them depending on the state.
How do you compare state crypto rules?
States use a crypto license, money transmitter laws, or no specific regime.
- 1Identify the activityNote whether it takes custody, runs an exchange, or transmits funds.
- 2Check for a crypto licenseNew York's BitLicense, created in 2015, covers custody, exchange, and transmission.
- 3Check the charter routeWyoming offers a special-purpose depository institution charter for crypto banks.
- 4Read the transmitter lawIf there is no crypto license, check the money transmitter law.
- 5File through NMLSMany states take applications through NMLS, and some join multistate agreements.
What records and safeguards come next?
After licensing, regulators act when a business operates without one, issuing cease-and-desist orders and fines.
- Keep license applications and state replies.
- Track licensed states.
- Log complaints and enforcement letters.
- Update the list when the business expands.
Frequently asked questions
Only if it holds or transmits customer funds. A wallet holding a user's own keys usually does not need one.
A BitLicense is a crypto-only license from New York's Department of Financial Services; a money transmitter license comes from a state's general money transmission law.
No. One state's license generally covers only customers in that state.
Usually through existing lending or securities laws rather than a separate staking rule.
