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While career and technical schools have offered short-term credential programs for decades, a proliferation of digital badges, bootcamps, and other micro-credentials have recently emerged in the United States. How individual states envision their regulatory role in this space remains understudied. Our study focuses on shared challenges and policy recommendations gleaned from semi-structured interviews with leaders from 14 organizations, including state authorization agencies, public higher education system offices, and private educational providers. We conduct a cross-case analysis of the regulatory approval process, including the disruption and opportunities the COVID-19 pandemic presents to the industry. Based on these findings, we offer recommendations for state authorizing agencies and policymakers, as well as recommendations for future research.