NY State Senator Proposes Bill to Establish Crypto Research Task Force

A New York state senator has introduced a legislation, proposing to establish a crypto and blockchain research task force.

Senator James Sanders Jr. proposed the bill on Wednesday, that aims to provide comprehensive information to the governor and legislative bodies “on the effects of the widespread use of cryptocurrencies.”

The proposal also emphasized that New York State “should consider” the use of blockchain technology.

Per the bill, the crypto task force would comprise of 17 members to study crypto use-cases and their “ancillary systems.”

“Members appointed to the task force shall have relevant experience and knowledge concerning the digital currency, cryptocurrency and blockchain industries.”

If the bill is enacted the crypto taskforce members will be appointed no later than 90 days, the proposal read. Further, the members are expected to deliver a report on the research findings before December 15, 2027 and submit to the state governor and the legislature.

NY Crypto Task Force Deliverables

The research should have details about the number of cryptos currently being traded and their percentage of market share.

The Senator further proposed that the task force members shall furnish details of the number of exchanges operating in the state, their average monthly trade volume and the use of cryptos on the local tax receipts.

Sen. Sanders emphasized that the New York State “hosts a substantial proportion” of crypto mining. As a result, the report shall include necessary energy consumption for coin mining operations and their environmental impact, he added.

Additionally, the task force should suggest legislative and regulatory recommendations to increase transparency and security and enhanced consumer protection.

The bill is set to undergo assembly and senate votes, before successfully signed into law by the governor.

New York Advances in Crypto Regulation

New York continues to be a leader in state-level digital currency regulation. It was the first to design ‘BitLicense,’ a landmark cryptocurrency regulatory regime adopted by the NYDFS in June 2015. The NYDFS also introduced new guidelines on the listing and delisting of crypto assets to heighten the standards for the current crypto listing and delisting process.

However, the state’s BitLicense received mixed reactions from crypto enthusiasts. Critics have argued that the strict regulations could stifle innovation in the state.

Besides, New York City’s Mayor Eric Adams has established himself as a crypto enthusiast, promising to make the Big Apple “the centre of Bitcoins.”

Meanwhile, several US states, including Arizona and Utah have been advancing in embracing the asset class. Last week, Utah announced that it is on track to becoming the first U.S. state to establish a Bitcoin reserve.