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A09507 Summary:

BILL NOA09507
 
SAME ASSAME AS S08136-A
 
SPONSORVanel
 
COSPNSRBurdick, Sayegh
 
MLTSPNSR
 
 
Establishes the New York state cryptocurrency and blockchain study task force to provide the governor and the legislature with information on the effects of the widespread use of cryptocurrencies and other forms of digital currencies and their ancillary systems, including but not limited to blockchain technology, in the state.
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A09507 Actions:

BILL NOA09507
 
03/20/2024referred to banks
05/14/2024reported referred to ways and means
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A09507 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9507
 
SPONSOR: Vanel
  TITLE OF BILL: An act in relation to establishing the New York state cryptocurrency and blockchain study task force; and providing for the repeal of such provisions upon expiration thereof   PURPOSE OR GENERAL IDEA OF BILL:: Establishes the New York state cryptocurrency and blockchain study task force.   SUMMARY OF PROVISIONS:: Section 1 short title Section 2 authorizes the department of financial services to establish a New York State cryptocurrency and blockchain study task force. Section 3 states who the task force shall be comprised of. Section 4 lists the responsibilities and roles of the taskforce. Section 5 is the effective date and the repeal date of this act.   JUSTIFICATION:: New York is arguably the financial capital of the world, and we must ensure that we help foster the creation of an environment that allows us to continue to lead the world in the financial sector; the New York Stock Exchange and the NASDAQ are two of the world's most valued stock exchanges and the financial industry accounts for nearly twenty percent of New York State's tax revenue. However, it is not guaranteed that we will continue to be the world's financial leader. In reality, in the current economic environment, we are competing with London, Tokyo, Shanghai, and Hong Kong for financial investments and our position as a fiscal leader. In current digital and technological world, New York is vying for future financial transactions and activity with almost every global market and state. Cryptocurrencies have been making inroads into New York's digital econo- my over the last decade. A rising number of businesses around the state are accepting cryptocurrencies as payment. Throughout the state, there are a number of cryptocurrency-related investments and investment compa- nies. Furthermore, our state hosts a substantial proportion of block- chain mining. Blockchain is the technology that undergirds the industry. Its benefits include decentralization, immutable security, and transparency amongst other things. New York State should consider the uses of the technology. The Bitlicense, which is a business license for virtual currency activ- ities in New York State, was promulgated by the New York State Depart- ment of Financial Services (NYSDFS) in 2015. We must thoroughly compre- hend the implications of Blockchain technology, its impact on innovation, its potential for jobs and economic growth, energy consump- tion, environmental issues, and competition in order to supplement the Bitlicense with the correct legislative framework. New York must be a state where: (1) consumers and investors are safeguarded, (2) money laundering is prevented, (3) New Yorkers are protected from unscrupulous users and actors, (4) employment and economic growth are promoted, (5) blockchain technology uses are considered, and (6) environmental damage is minimized.   PRIOR LEGISLATIVE HISTORY:: New bill   FISCAL IMPLICATIONS:: Minimal   EFFECTIVE DATE:: This act shall take effect immediately and shall be deemed repealed on December 15, 2024.
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A09507 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9507
 
                   IN ASSEMBLY
 
                                     March 20, 2024
                                       ___________
 
        Introduced  by M. of A. VANEL -- read once and referred to the Committee
          on Banks
 
        AN ACT in relation to establishing the New York state cryptocurrency and
          blockchain study task force; and providing  for  the  repeal  of  such
          provisions upon expiration thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "New York state cryptocurrency and blockchain study act".
     3    § 2. There is hereby established the New York state cryptocurrency and
     4  blockchain  study  task  force  (hereinafter  referred  to  as "the task
     5  force") to provide the governor and the legislature with information  on
     6  the effects of the widespread use of cryptocurrencies and other forms of
     7  digital currencies and their ancillary systems, including but not limit-
     8  ed to blockchain technology, in the state.
     9    § 3. 1. The task force shall consist of seventeen members as follows:
    10    a.  seven  members  appointed by the governor, which shall include the
    11  following five members:
    12    i. the superintendent of the department of financial services, or such
    13  superintendent's designee;
    14    ii. the commissioner of the department of environmental  conservation,
    15  or such commissioner's designee;
    16    iii. a representative from the financial services industry;
    17    iv.  a  representative from a state or national organization promoting
    18  environmental conservation; and
    19    v. a representative who is a faculty member of an  accredited  college
    20  or university in New York state with experience in economic studies.
    21    b.  the  comptroller  of  the  state of New York, or the comptroller's
    22  designee;
    23    c. four members appointed by the temporary president of the senate;
    24    d. four members appointed by the speaker of the assembly; and
    25    e. the attorney general of the state of  New  York,  or  the  attorney
    26  general's designee.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03808-06-4

        A. 9507                             2
 
     1    2.  To  the  extent  practicable,  members appointed to the task force
     2  shall have relevant experience  and  knowledge  concerning  the  digital
     3  currency, cryptocurrency and blockchain industries.
     4    3.  The  members  of  the task force shall receive no compensation for
     5  their services, but shall be allowed their actual and necessary expenses
     6  incurred in the performance of their duties pursuant to this act.
     7    4. Any vacancies in the membership of the task force shall  be  filled
     8  in the same manner provided for in the initial appointment.
     9    5.  The task force may consult with any organization, government enti-
    10  ty, or person, in the development of its report required  under  section
    11  four of this act.
    12    6.  The  members  of  the  task force shall be appointed no later than
    13  ninety days after the effective date of this act.
    14    § 4. On or before December 15, 2026, the task force  shall  submit  to
    15  the  governor,  the temporary president of the senate and the speaker of
    16  the assembly a report containing, but  not  limited  to,  the  following
    17  information based on available data:
    18    a.  a  review  of  the digital currency, cryptocurrency and blockchain
    19  industries in New York state;
    20    b. the number of digital currencies currently being traded  and  their
    21  approximate percentage of market share;
    22    c. the number of exchanges operating in New York state and their aver-
    23  age monthly trade volume;
    24    d.  the  use  of  digital  currencies'  impact  on state and local tax
    25  receipts;
    26    e. the types of  investment  entities  that  are  large  investors  in
    27  digital currency;
    28    f.  the  energy  consumption  necessary for coin mining operations and
    29  other policy considerations related thereto;
    30    g. the environmental impact of coin mining operations;
    31    h. the transparency  of  the  digital  currency  marketplace  and  the
    32  related potential of market manipulation and other illegal activities;
    33    i.  a review of laws and regulations on digital currency used by other
    34  states, the federal government, foreign countries, and foreign political
    35  and economic unions to regulate the marketplace; and
    36    j. legislative and regulatory recommendations,  if  any,  to  increase
    37  transparency  and security, enhance consumer protections, and to address
    38  the long-term impact related to the use of cryptocurrency.
    39    § 5. This act shall take effect immediately and shall expire  December
    40  15,  2026 when upon such date the provisions of this act shall be deemed
    41  repealed.
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