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New York and Wyoming financial regulators have signed an agreement to strengthen oversight of cryptocurrency and digital asset companies operating across both states.
The New York Department of Financial Services and Wyoming Division of Banking announced the memorandum of understanding on Wednesday. Acting Superintendent Kaitlin Asrow and Wyoming Banking Commissioner Jeremiah Bishop signed the agreement.
The pact allows both regulators to use each other’s supervisory experience when reviewing companies that operate in New York and Wyoming. It covers licensing, chartering, examinations, and possible enforcement matters.
The agreement also creates a framework for exchanging regulatory information. That includes historical examination records, market information, supervisory reports and specialist analysis.
The memorandum covers companies that already hold a license or charter in either state. It also applies to businesses seeking approvals from both regulators at the same time.
Under the agreement, New York and Wyoming can share technical reviews and previous examination findings. They can also exchange analysis relevant to licensing and charter applications.
That structure could reduce duplicated regulatory work when one company operates under both state systems. At the same time, each regulator keeps responsibility for its own licensing and supervisory decisions.
Asrow said cooperation between states plays an important role in virtual currency supervision. She said the agreement expands the information and resources available to each regulator.
She also linked the partnership to consumer protection and responsible development within the digital asset market.
The agreement gives both agencies a formal process for addressing that issue. It connects two state systems that have developed different approaches to cryptocurrency regulation.
The partnership reaches beyond licensing. Both regulators also plan to coordinate examination schedules for companies operating in their jurisdictions.
They will work toward conducting joint examinations where appropriate. In addition, the agencies can share examination reports and information about broader market developments.
The regulators will also exchange notifications concerning possible enforcement actions. That process gives each state more visibility when a supervised business faces regulatory concerns elsewhere.
Bishop described the agreement as an example of cooperation within the state regulatory system. He said the arrangement brings together two regulators with substantial digital asset experience.
New York introduced its BitLicense framework in 2015. The system places approved virtual currency companies under regulatory standards covering consumer protection, market safeguards and financial soundness.
Galaxy Digital is among the firms that have received a New York BitLicense. The company secured the approval as part of its expansion into institutional cryptocurrency services.
Mastercard Transaction Services also received a BitLicense on May 27. The company forms part of Mastercard and operates within the broader payments sector.
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Wyoming has taken a different route by developing banking structures designed for digital asset businesses. Its special purpose depository institutions operate as fully reserved banks. They can accept deposits while also offering custody, asset servicing and related financial functions.
A fully reserved institution maintains liquid assets equal to or greater than customer cash deposits. Meanwhile, custody means holding assets on behalf of customers.
Wyoming’s banking structure has also supported access to federal payment infrastructure through arrangements separate from the new memorandum. Kraken Financial received a limited-purpose Federal Reserve master account on March 4. The approval runs for an initial one-year period and carries restrictions.
The account lets the Wyoming-chartered bank connect directly to core U.S. payment systems, including Fedwire.
Wyoming has also advanced a state stable token that uses Chainlink proof-of-reserve technology. Meanwhile, New York continues to supervise firms through its established virtual currency licensing framework.
The new agreement connects those regulatory structures through shared licensing reviews, examination planning and supervisory information.
New York and Wyoming will now coordinate digital asset licensing, examinations and enforcement information through a formal regulatory agreement. The pact connects New York’s BitLicense system with Wyoming’s crypto-focused banking framework while giving both regulators access to broader supervisory data.
