Regulatory AlertsUS Federal: fintech & payments regulation
Partially regulatedUS: State-by-state MSB licensing; Federal AML via FinCEN; no federal VASP license
- Lead regulator
- FinCEN (federal AML) and State Regulators (licensing)
- Also involved
- CFPB (consumer protection) · OCC/Fed/FDIC (banking partners) · SEC/CFTC (securities/commodities)
- Core law
- Bank Secrecy Act (1970) and State Money Transmitter Laws
- Entry capital
- Varies by state (e.g., $10k-$500k)
- Approval timeline
- 3-12 months per state; FinCEN registration is immediate
- Customer assets
- Segregated trust accounts required in most states
- Data protection
- GLBA (federal) · State laws (e.g., CCPA)
- Sandbox
- No
The US lacks a single federal license for payment services. Federal regulation focuses on Anti-Money Laundering (AML) compliance via FinCEN registration. Operational licensing is decentralized, requiring individual licenses in each state where the firm conducts business. Recent federal activity includes the GENIUS Act framework for stablecoin issuers.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | Uncertainverify with regulator Often covered by MSB or ISO status; no specific federal license | — | — | — |
| E-money & wallet issuance | LicenceMoney Transmitter License (MTL) Requires MTL in each state; capital varies by jurisdiction | — | — | State Regulators |
| Domestic money transfer | LicenceMoney Transmitter License (MTL) Domestic transfers require state MTLs and FinCEN registration | — | — | State Regulators |
| Cross-border remittance | LicenceMoney Transmitter License (MTL) Cross-border transfers require state MTLs and FinCEN registration | — | — | State Regulators |
| Agent network | Uncertainverify with regulator Agent network rules vary by state; often exempt if licensed principal | — | — | — |
| Open banking / account information | Unregulated No specific open banking license; relies on API security and consent | — | — | — |
| Foreign-exchange services | LicenceMoney Transmitter License (MTL) FX is typically bundled with MTL requirements | — | — | State Regulators |
New — what changed recently
- 2026-04-07GENIUS Act Proposed Rules — FDIC proposed tailored requirements for permitted payment stablecoin issuers under the GENIUS Act.[1]
- 2025-12-16GENIUS Act Application Procedures — FDIC approved notice of proposed rulemaking for stablecoin issuance application procedures.[2]
- 2026-04-10Regulation J Amendments — Fed proposed allowing FedNow participants to use non-Reserve Bank intermediaries.[3]
Market-entry checklist
- 1Register with FinCEN as MSBFile FinCEN Form 107 to register as a Money Services Business for federal AML compliance.
- 2Obtain State Money Transmitter LicensesApply for MTLs in each state where you conduct business, meeting specific capital and surety bond requirements.
- 3Establish AML Compliance ProgramImplement a written AML program including a designated compliance officer and transaction monitoring systems.
- 4Secure State Capital BondsPost surety bonds ranging from $10,000 to $500,000 depending on the state and transaction volume.
- 5Open Segregated Customer AccountsMaintain customer funds in segregated trust accounts as required by most state money transmitter laws.
Sources
- Notice of Proposed Rulemaking to Establish GENIUS Act Requirements and Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers and Insured Depository Institutions · 2026-04-07
- Notice of Proposed Rulemaking to Establish GENIUS Act Application Procedures for FDIC-Supervised Institutions Seeking to Issue Payment Stablecoins · 2025-12-16
- Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers Through the Fedwire Funds Service and the FedNow Service; Regulation J · 2026-04-10