The Continuing Shift To Modern Money Transmission Laws

Within the past two months, three states have adopted the Money Transmission Modernization Act (MTMA). The governors of Virginia, Mississippi, and most recently Colorado, signed bills that implement the MTMA, and two other states are currently considering similar bills (Alaska and Nebraska).

Mobile wallets, peer-to-peer payments, and digital assets are modern methods of moving money, but have been historically regulated by laws that in some states have been around for over one hundred years. These laws were originally designed for older forms of non-bank payments, such as money orders, Western Union style remittance services, and travelers checks. The recent boom in financial technology has enabled fintechs to provide nationwide and instant payments, which heightens the need for more uniform laws governing non-bank money transmission. To keep up with the pace of financial technology, the Conference of State Bank Supervisors created the MTMA to bring state money