A New York senator has proposed legislation for a crypto task force to investigate the current state of cryptocurrencies and other forms of digital currency in the city.
The New York State Cryptocurrency and Blockchain Study Act, introduced by state Senator James Sanders Jr on Feb. 12, would establish a task force of 17 people to investigate “the effects of the widespread use of cryptocurrencies and other forms of digital currencies and their ancillary systems.”
As part of their investigation, the task force would review the state of crypto in New York, identify how many digital currencies are being traded, the number of exchanges in New York and how crypto affects the state and local tax receipts, according to the bill’s description on the New York State Senate website.
The New York State Cryptocurrency and Blockchain Study Act hopes to create a task force to investigate the state of the crypto industry in New York. Source: New York State Senate
The task force has also flagged investigating the environmental impact of crypto, energy consumption, and how New York’s current regulations compare to other jurisdictions as priorities.
If the bill is enacted, task force members will be appointed no later than 90 days after and will be expected to deliver a report on its findings before Dec. 15, 2027, to the New York governor and the legislature.
The report would also “[s]uggest legislative and regulatory measures to improve transparency, security, consumer protection, and address long-term impacts of cryptocurrency use.”
The bill has only just been introduced and is still under committee review. To be successfully signed into law by the governor, it needs to survive a floor debate and vote in the assembly and senate.
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New York has been described as a hotbed for the crypto industry; however, its BitLicense program, launched in 2015, has received criticism from the industry and pro-crypto New York Mayor Eric Adams as too stifling.
To operate in New York, crypto businesses need a BitLicense from the New York Department of Financial Services.
However, critics have taken aim at the complex and costly requirements, such as high licensing fees and stringent compliance with Anti-Money Laundering and Know Your Customer regulations.
The number of US states considering crypto investment legislation is increasing, with more than 20 states looking into crypto-related bills. Meanwhile, Arizona and Utah have advanced legislation beyond the House committee level, according to Bitcoin Reserve Monitor.
There are currently more than 20 US states considering crypto investment legislation. Source: Bitcoin Reserve Monitor
Asset manager VanEck has suggested that if all the proposed bills were to pass, it could drive $23 billion in demand for Bitcoin (BTC).
Over 100 public entities, including governments and private companies, have also started accumulating Bitcoin, citing the cryptocurrency’s perceived utility as an inflation hedge, according to data from BitcoinTreasuries.NET.
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