Does Your Noncustodial Crypto Business Need a Money Transmitter License?

Law and Ledger, a crypto legal news segment from digital asset law firm Kelman Law, published an opinion piece by Michael Handelsman examining whether noncustodial crypto businesses need money transmitter licenses. The article centers on a startup building a wallet that lets customers sign transactions on their own devices, with the company never taking custody of user funds. The piece addresses a core regulatory question for the sector: whether noncustodial service providers fall within state money transmitter licensing regimes or can operate without them. The analysis matters because licensing determinations affect compliance costs, market entry, and legal risk for wallet developers and other noncustodial businesses across US jurisdictions. Watch for how state regulators and courts treat the custody question as noncustodial wallet models proliferate.