New York’s Department of Financial Services and the Wyoming Division of Banking signed a memorandum of understanding on Wednesday to coordinate oversight of companies offering virtual currency and digital asset services, according to the DFS. Acting Superintendent Kaitlin Asrow and Wyoming Banking Commissioner Jeremiah Bishop announced the agreement, which lets each state regulator draw on the other’s supervisory expertise for firms operating across both jurisdictions.
What the agreement covers
The memorandum lays out coordination on licensing and chartering, covering companies already licensed or chartered in one state as well as those applying in both at the same time. The two regulators will share analysis, subject matter reviews, and historical examination data to streamline the application process. The DFS described the deal as formalizing a relationship between two states that have each built significant experience overseeing digital asset activity. Asrow framed the deal as a consumer-protection measure. “Interstate collaboration is essential for the virtual currency space,” she said. “This MOU will add to the resources and information available to each regulator, helping to facilitate responsible innovation in the market while protecting consumers across our respective jurisdictions.”
Joint examinations and information sharing
Beyond licensing, the agreement commits both agencies to coordinate examination schedules and work toward joint examinations of companies operating in New York and Wyoming. It also establishes protocols for sharing supervisory reports, market trend data, and notifications about potential enforcement actions. Bishop said the pact shows the strength of the state regulatory system, describing it as two leading regulators working together to improve the effectiveness of supervision.
Two frameworks, one approach
New York runs the nation’s oldest comprehensive virtual currency regime, the BitLicense, introduced in 2015, a framework that has drawn firms including Galaxy Digital, which secured its own New York BitLicense to expand institutional crypto services. DFS said regulated New York firms face strict supervisory standards designed to protect consumers, safeguard financial markets, and ensure the soundness of the financial system. Wyoming, meanwhile, has positioned itself as a crypto-friendly jurisdiction and recently advanced a state stable token built on Chainlink proof-of-reserve technology. The memorandum ties the two approaches together, pairing New York’s supervisory standards with Wyoming’s chartering momentum as both states look to keep pace with an industry that operates across state lines.