What's happening
This bill establishes a task force to study the impact and feasibility of a state-issued cryptocurrency in New York.
Why it matters
Could influence future state policy on digital currency. By closely analyzing regulatory steps, legal challenges, and economic impacts, the task force could lay the groundwork for New York to potentially launch its own cryptocurrency, impacting how public funds and transactions are managed.
Examines effects on financial oversight and stability. The bill mandates an assessment of how a state cryptocurrency would interact with federal agencies (like the SEC and CFTC), as well as the potential risks or benefits to monetary policy and the broader financial system.
Addresses tax and legal uncertainties. The study will explore how the introduction of a state-backed digital currency could affect tax collection and compliance at local, state, and federal levels—important for residents, businesses, and government agencies.
Draws on lessons from other jurisdictions. By requiring a review of steps taken by other governments and central banks, the bill ensures New York will benefit from global best practices and avoid pitfalls seen elsewhere in cryptocurrency adoption.
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Who cares
Headline styles
Study State Cryptocurrency Impact
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Study State Cryptocurrency Impact
In Assembly Committee · Governmental Operations · Sponsor Clyde Vanel
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4562
2019-2020 Regular Sessions
IN SENATE
March 14, 2019
Introduced by Sens. PARKER, SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to establish a task force to study the impact of a state-issued cryptocurrency on the state of New York
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. a. A task force is hereby established to study the impact of a state-issued cryptocurrency on the state of New York. For purposes of this act, "cryptocurrency" shall mean a digital currency in which encryption techniques are used to regulate the generation of units and currency and verify the transfer of funds, operating independently from a central bank.
b. The task force shall study:
(i) the necessary steps the state of New York must take to produce and release a state-issued cryptocurrency and how such will affect the United States Securities and Exchange Commission's and the Commodities Futures Trading Commission's jurisdiction over economic transactions;
(ii) the implications of issuing such cryptocurrency on monetary policy and financial stability;
(iii) how local, state, and federal taxation would be affected by such; and
(iv) the measures other jurisdictions, central banks, international governing bodies, states, or countries, have taken to potentially issue cryptocurrency.
c. No later than one year after the effective date of this act, the task force shall report its findings to the governor and the legislature, as described under subdivision b of this section.
§ 2. a. The task force shall be comprised of:
(i) two members appointed by the governor;
(ii) two members appointed by the temporary president of the senate;
(iii) two members appointed by the speaker of the assembly;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01283-01-9
S. 4562 2
(iv) two members appointed by the superintendent of the department of financial services; and
(v) one member appointed by the director of the office of information technology services.
b. One of the appointments by the governor shall serve as chairperson of the task force.
c. The members of the task force shall receive no compensation for their services, but shall be allowed their actual and necessary expenses incurred in the performance of their services.
d. All departments, divisions, bureaus, commissions, districts or agencies of the state or any political subdivisions thereof shall, at the request of the chairperson, provide the task force with such facilities, assistance and data as will enable the task force to carry out its powers and duties.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to establish a task force to study the impact of a state-issued cryptocurrency on the state of New York
Purpose or general idea of bill
Establishes a task force to study the issuance of a state-issued crypto- currency in to raise revenue New York State. (NYcoin)
Summary of provisions
Section one establishes a task force to study the impact of cryptocur- rencies, defines cryptocurrency and delineates the study parameters.
Section two establishes that the task force will be comprised of ten members, appointed by the governor, temporary president of the senate, speaker of the assembly superintendent of the department of financial services and the director of the office of information technology services.
Section three sets the effective date,
Justification
It is important for our state to review, explore and propose different forms of revenue raising, in place of taxes. The new technologies allows New York new opportunities in dynamic revenue sources. The possibility of raising capital through cryptocurrency and the ability to create a tokenized security for infrastructure projects, state programs, or other state related projects is possible.
This bill creates a taskforce to study the possibility of creating a state-issued cryptocurrency in New York State to fund certain infras- tructure projects or other state efforts.
Prior legislative history
2017-18: S7725 - Referred to Finance
Fiscal implications for state and local governments
To Be Determined.
Effective date
Effective immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.