Senator James Sanders Jr. has introduced a bill to create a taskforce to study the status and impact of blockchain technologies and digital assets in New York State.
Impact on the Economy at Large
Dubbed the New York State Cryptocurrency and Blockchain Study Act, the crypto research taskforce will have 17 members. The members would review the state of digital assets and identify their impact on the state’s economy. The document stated that among its duties would be to investigate the effects of the widespread use of cryptocurrencies and other forms of digital currencies and their ancillary systems.
Members of Crypto Research Task Force will not be Compensated
Academic experts in finance, environmental conservation groups, and representatives from the Department of Financial Services would be among those to be included in the crypto research task force. The proposed bill explains that the members would serve without compensation, though their expenses would be reimbursed. From the date of the bill’s passing, the crypto research taskforce would be appointed within 90 days and expected to make proposals about a future crypto policy framework for the city of New York.
New York has the Toughest Crypto Regulations
The proposal for a crypto research taskforce by James Sanders Jr. comes at a time when at least 20 US States are at different levels of considering crypto legislation and proposals for enacting strategic Bitcoin Reserve Bills. According to the head of digital research at VanEck, researcher Matthew Sigel, the efforts by the US States to invest in Bitcoin could create a $23 billion demand for Bitcoin. Currently, the state of New York has some of the toughest crypto regulations within the United States, thanks to the BitLicense framework implemented in 2015. New York’s Department of Financial Services keeps the crypto industry under watch. It requires crypto market players to apply for a BitLicense or a limited-purpose trust charter. Experts argue that the current legislative requirements have stilled the industry, making it difficult for crypto firms to comply, and as a result, they bypass the state and look for a better environment elsewhere.
The establishment of a crypto research taskforce, as proposed by Sen. James Sanders Jr., will not be the first time New York has attempted to investigate the crypto situation. Two previous attempts date back to 2019 and 2023, but they did not advance.
