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: A954
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:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed repealed on
December 15, 2024.
