What's happening
This bill establishes a task force to study and report on the effects and regulation of digital currencies in New York.
Why it matters
The creation of this task force signals a serious state-level commitment to understanding and potentially shaping policy around digital currencies, which could influence future regulation and innovation in New York’s financial sector.
By specifically reviewing the impact of New York’s existing BitLicense program, the task force may recommend changes that could make it easier (or harder) for cryptocurrency businesses to operate in the state, directly affecting entrepreneurs, investors, and consumers.
The collaboration with key state and city agencies, such as tax and finance departments, suggests the findings could have broad implications for taxation, compliance, and oversight of digital currencies in New York, potentially impacting individuals and businesses using or investing in these assets.
The mandated report, due to the governor and legislature, may lay the groundwork for new laws or regulations that could set national precedents, given New York’s outsized influence in the financial industry.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Create Digital Currency Task Force
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to internet and technology
- Committee discharged and committed to internet and technology
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4593
2019-2020 Regular Sessions
IN SENATE
March 15, 2019
Introduced by Sens. PARKER, SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to establish the digital currency task force
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The department of financial services is hereby authorized to establish the New York state digital currency task force to provide the governor and the legislature with information on the potential effects of the widespread implementation of digital currencies on financial markets in the state.
§ 2. The task force shall be comprised of:
a. two members appointed by the governor;
b. two members appointed by the temporary president of the senate;
c. two members appointed by the speaker of the assembly;
d. one member appointed by the minority leader of the senate;
e. one member appointed by the minority leader of the assembly; and
f. two members appointed by the superintendent of the department of financial services.
§ 3. The task force shall:
a. examine and evaluate digital currencies within the state;
b. identify the potential effects of the widespread implementation of digital currencies on financial markets;
c. review the impact of the department's BitLicense program on the use of digital currencies; and
d. make recommendations to further utilize digital currencies within the state.
§ 4. Such task force shall collaborate with state and city of New York agencies including, but not limited to, the department of taxation and finance and the department of finance of the city of New York.
§ 5. The department of financial services shall submit a report, on or before January 1, 2020, to the governor and the legislature of its findings, conclusions and recommendations, and legislative and regulatory proposals deemed necessary to implement such recommendations.
§ 6. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01270-02-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to establish the digital currency task force
Purpose or general idea of bill
Establishes a commission to study how to regulate cryptocurrencies in New York State
Summary of provisions
Section 1 authorizes the department of financial services to establish a New York State digital currency task force.
Section 2 states who the task force shall be comprised of.
Section 3 lists the responsibilities and roles of the taskforce.
Section 4 explains who the taskforce will work and collaborate with.
Section 5 addresses when the taskforce must submit their final report.
Justification
It is arguable that New York remains as the global financial capital center. We must make sure that we help foster an environment to lead the world in the finance sector. Today, the New York Stock Exchange and NASDAQ are two of the most valuable stock exchanges in the world. In New York State, the financial sector makes up over eighteen percent of our tax revenue and is the state's premiere economic engine.
We, however, are not guaranteed to remain the world financial leader. In fact in this economic environment, we are competing for financial investments and our standing the fiscal leader with London, Japan, Shan- ghai and Hong Kong. In this digital and technological environment, however, New York is competing with virtually every global market and cur states for future financial transactions and activities. Califor- nia, Nevada and Delaware are gaining penetration for cryptocurrency investments and transactions.
Cryptocurrencies are making their way into the New York state digital economy. A growing number of merchants accept cryptocurrency as payment including Microsoft, Expedia.com, Dell, Overstock.com, Reddit, Subway and Bloomberg.com. Companies and investors are raising capital and fund- ing through Initial Coin Offerings (IC0). Additionally, there are cryp- tocurrency ATMs across the state where New Yorkers are purchasing denom- inations of cryptocurrencies at conveniences stores and public places.
According to Wikipedia, "a cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the trans- actions and to control the creation of additional units of the curren- cy... Bitcoin, created in 2009, was the first decentralized cryptocur- rency." The virtue and danger of cryptocurrency is its anonymity and decentralized model. As a state we must protect anti-money laundering, know-your-customer laws and consumer and investor protections.
In 2015, The New York State Department of Financial Services (DFS) promulgated the Bitlicense, which is a business license for virtual currency activities in New York State. The regulations are limited to New York State activities. Since 2015, DFS has awarded 5 Bitlicenses.
In order to supplement the Bitlicense with the proper legislative frame- work, we must fully understand the implications of blockchain technolo- gy, its impact on innovation, competition and regulation. New York must be a state where: (1) consumers and investors are protected, (2) we prevent money laundering and (3) we know the customer to protect from nefarious uses and actors. At the same time, New York must lead the world in legitimate digital and cryptocurrency investments and trans- actions.
Prior legislative history
2017-18: 57724 - Referred to Banks
Effective date
Effective immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.