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: A3279A
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 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:
TBD.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire December 15,
2027 when upon such date the provisions of this act shall be deemed
repealed.
STATE OF NEW YORK
________________________________________________________________________
3279--A
2025-2026 Regular Sessions
IN ASSEMBLY
January 27, 2025
___________
Introduced by M. of A. VANEL, BURDICK, SAYEGH -- read once and referred
to the Committee on Banks -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
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") within the department of financial services to provide the
6 governor and the legislature with information on the effects of the
7 widespread use of cryptocurrencies and other forms of digital currencies
8 and their ancillary systems, including but not limited to blockchain
9 technology, in the state.
10 § 3. 1. The task force shall consist of sixteen members as follows:
11 a. six members appointed by the governor, which shall include the
12 following:
13 i. the superintendent of the department of financial services, or such
14 superintendent's designee;
15 ii. the commissioner of the department of environmental conservation,
16 or such commissioner's designee;
17 iii. the commissioner of taxation and finance or such commissioner's
18 designee;
19 iv. a representative from the financial services industry;
20 v. a representative from a state or national organization promoting
21 environmental conservation; and
22 vi. a representative who is a faculty member of an accredited college
23 or university in New York state with experience in economic studies.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06929-02-5
A. 3279--A 2
1 b. the comptroller of the state of New York, or the comptroller's
2 designee;
3 c. four members appointed by the temporary president of the senate,
4 two of which are representatives from two separate cryptocurrency trade
5 groups, organizations, or companies;
6 d. four members appointed by the speaker of the assembly, two of which
7 are representatives from two separate cryptocurrency trade groups,
8 organizations, or companies; and
9 e. the attorney general of the state of New York, or the attorney
10 general's designee.
11 2. To the extent practicable, members appointed to the task force
12 shall have relevant experience and knowledge concerning the digital
13 currency, cryptocurrency and blockchain industries.
14 3. The members of the task force shall receive no compensation for
15 their services, but shall be allowed their actual and necessary expenses
16 incurred in the performance of their duties pursuant to this act.
17 4. Any vacancies in the membership of the task force shall be filled
18 in the same manner provided for in the initial appointment.
19 5. The task force may consult with any organization, government enti-
20 ty, or person, in the development of its report required under section
21 four of this act.
22 6. The members of the task force shall be appointed no later than
23 ninety days after the effective date of this act.
24 § 4. On or before December 15, 2027, the task force shall submit to
25 the governor, the temporary president of the senate and the speaker of
26 the assembly a report containing, but not limited to, the following
27 information based on available data:
28 a. a review of the digital currency, cryptocurrency and blockchain
29 industries in New York state;
30 b. the number of digital currencies currently being traded and their
31 approximate percentage of market share;
32 c. the number of exchanges operating in New York state and their aver-
33 age monthly trade volume;
34 d. the use of digital currencies' impact on state and local tax
35 receipts;
36 e. the types of investment entities that are large investors in
37 digital currency;
38 f. the energy consumption necessary for coin mining operations and
39 other policy considerations related thereto;
40 g. the environmental impact of coin mining operations;
41 h. the transparency of the digital currency marketplace and the
42 related potential of market manipulation and other illegal activities;
43 i. a review of laws and regulations on digital currency used by other
44 states, the federal government, foreign countries, and foreign political
45 and economic unions to regulate the marketplace; and
46 j. legislative and regulatory recommendations, if any, to increase
47 transparency and security, enhance consumer protections, and to address
48 the long-term impact related to the use of cryptocurrency.
49 § 5. This act shall take effect immediately and shall expire December
50 15, 2027 when upon such date the provisions of this act shall be deemed
51 repealed.
