New York May Create Crypto Task Force to Track Trading and Regulations

• New York State Senator James Sanders introduces a bill proposing a 17-member crypto task force to examine crypto use cases and related systems.
• The task force will assess the state of crypto in New York, the exchanges operating in the state, and the impact of crypto on state and local tax revenues.

In a move to assess the impact of cryptocurrency and blockchain technology on New York’s economy, State Senator James Sanders Jr. has introduced the New York State Cryptocurrency and Blockchain Study Act. The proposed legislation, unveiled on Wednesday, aims to establish a 17-member task force dedicated to researching the role of digital assets and blockchain innovations in the state’s financial sector.

The bill is currently under committee review and must undergo a floor debate and vote in both the State Assembly and Senate before it can be sent to the governor for approval.

Scope of the Crypto and Blockchain Task Force

Analyzing the bill, CNF found that the task force will focus on several key areas, including assessing New York’s cryptocurrency market, the number of digital currencies traded, and the operations of crypto exchanges in the state. It will also evaluate the impact of cryptocurrency and blockchain technology on state and local tax revenues while analyzing the environmental effects of crypto mining.

As noted in a 2022 news brief, New York has consistently taken a cautious stance on crypto mining. That year, the New York State Assembly passed a bill imposing a two-year ban on all Proof-of-Work (PoW) crypto mining facilities.

Additionally, the task force will compare New York’s crypto regulations with those of other states and global financial hubs to identify competitive strengths and regulatory gaps. If passed, the bill would require task force members to be appointed within 90 days, with a final report due by December 15, 2027. This report will include legislative and regulatory recommendations, shaping the future of New York’s crypto and blockchain policies.

Currently, New York enforces some of the strictest crypto regulations in the U.S., primarily due to the BitLicense framework introduced in 2015, which requires crypto businesses to obtain a BitLicense from the NYDFS to operate in the state.

New York is home to the New York Stock Exchange (NYSE) and NASDAQ, two of the most valuable stock exchanges in the world. The financial sector accounts for nearly 20% of the state’s tax revenue, making it critical for policymakers to stay ahead of financial innovations. However, New York faces growing competition from other financial centers, including Tokyo, London, and Shanghai.

Hong Kong is notably ahead in this space, with the Securities and Futures Commission (SFC) recently licensing Panthertrade and YAX. Additionally, OSL, HashKey, and HKVAX, among others, have already secured similar licenses. This marks Hong Kong’s clear effort to establish itself as a leading hub for digital asset trading.

Currently, 20 U.S. states are evaluating proposals for a Strategic Bitcoin Reserve (SBR). States like Arizona and Utah have advanced legislation, while North Dakota has rejected crypto investment bills. As also featured in our recent coverage, North Carolina has proposed a bill allowing the state treasurer to invest public funds in qualified digital assets.