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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9275 REVISED 03/02/2022
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 transpar-
ency amongst other things. New York State should consider the uses of
the technology. The Bitlicense, which is a business license for virtual
currency activities in New York State, was promulgated by the New York
State Department of Financial Services (NYSDFS) in 2015. We must thor-
oughly comprehend the implications of Blockchain technology, its impact
on innovation, its potential for jobs and economic growth, energy
consumption, environmental issues, and competition in order to supple-
ment the Bitlicense with the correct legislative framework.
New York must be a state where: (1) consumers and investors are safe-
guarded, (2) money laundering is prevented, (3) New Yorkers are
protected from unscrupulous users and actors, (4) employment and econom-
ic growth are promoted, (5) blockchain technology uses are considered,
and (6) environmental damage is minimized.
PRIOR LEGISLATIVE HISTORY:
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed repealed on
December 15, 2024.
STATE OF NEW YORK
________________________________________________________________________
9275
IN ASSEMBLY
February 9, 2022
___________
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 sixteen 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 his
13 or her designee;
14 ii. the commissioner of the department of environmental conservation,
15 or his or her 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 his or her designee.
22 c. four members appointed by the temporary president of the senate;
23 and
24 d. four members appointed by the speaker of the assembly.
25 2. To the extent practicable, members appointed to the task force
26 shall have relevant experience and knowledge concerning the digital
27 currency, cryptocurrency and blockchain industries.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14668-01-2
A. 9275 2
1 3. The members of the task force shall receive no compensation for
2 their services, but shall be allowed their actual and necessary expenses
3 incurred in the performance of their duties pursuant to this act.
4 4. Any vacancies in the membership of the task force shall be filled
5 in the same manner provided for in the initial appointment.
6 5. The task force may consult with any organization, government enti-
7 ty, or person, in the development of its report required under section 4
8 of this act.
9 6. The members of the task force shall be appointed no later than
10 ninety days after the effective date of this act.
11 § 4. On or before December 15, 2024, the task force shall submit to
12 the governor, the temporary president of the senate and the speaker of
13 the assembly a report containing, but not limited to, the following
14 information based on available data:
15 a. a review of the digital currency, cryptocurrency and blockchain
16 industries in New York state;
17 b. the number of digital currencies currently being traded and their
18 approximate percentage of market share;
19 c. the number of exchanges operating in New York state and their aver-
20 age monthly trade volume;
21 d. the use of digital currencies' impact on state and local tax
22 receipts;
23 e. the types of investment entities that are large investors in
24 digital currency;
25 f. the energy consumption necessary for coin mining operations and
26 other policy considerations related thereto;
27 g. the environmental impact of coin mining operations;
28 h. the transparency of the digital currency marketplace and the
29 related potential of market manipulation and other illegal activities;
30 i. a review of laws and regulations on digital currency used by other
31 states, the federal government, foreign countries, and foreign political
32 and economic unions to regulate the marketplace; and
33 j. legislative and regulatory recommendations, if any, to increase
34 transparency and security, enhance consumer protections, and to address
35 the long-term impact related to the use of cryptocurrency.
36 § 5. This act shall take effect immediately and shall expire December
37 15, 2024 when upon such date the provisions of this act shall be deemed
38 repealed.
