BILL NUMBER: S8136A
SPONSOR: SANDERS
 
TITLE OF BILL:
An act in relation to establishing the New York state cryptocurrency and
blockchain study task force; and providing for the repeal of such
provisions upon expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
Establishes the New York state cryptocurrency and blockchain study task
force.
 
SUMMARY OF PROVISIONS: Section 1 short title
Section 2 authorizes the department of financial services to establish a
New York State cryptocurrency and blockchain study task force.
Section 3 states who the task force shall be comprised of. Section 4
lists the responsibilities and roles of the taskforce. Section 5 is the
effective date and the repeal date of this act.
 
JUSTIFICATION:
New York is arguably the financial capital of the world, and we must
ensure that we help foster the creation of an environment that allows us
to continue to lead the world in the financial sector; the New York
Stock Exchange and the NASDAQ are two of the world's most valued stock
exchanges and the financial industry accounts for nearly twenty percent
of New York State's tax revenue.
However, it is not guaranteed that we will continue to be the world's
financial leader. In reality, in the current economic environment, we
are competing with London, Tokyo, Shanghai, and Hong Kong for financial
investments and our position as a fiscal leader. In current digital and
technological world, New York is vying for future financial transactions
and activity with almost every global market and state.
Cryptocurrencies have been making inroads into New York's digital econo-
my over the last decade. A rising number of businesses around the state
are accepting cryptocurrencies as payment. Throughout the state, there
are a number of cryptocurrency-related investments and investment compa-
nies. Furthermore, our state hosts a substantial proportion of block-
chain mining.
Blockchain is the technology that undergirds the industry. Its benefits
include decentralization, immutable security, and transparency amongst
other things. New York State should consider the uses of the technology.
The Bitlicense, which is a business license for virtual currency activ-
ities in New York State, was promulgated by the New York State Depart-
ment of Financial Services (NYSDFS) in 2015. We must thoroughly compre-
hend the implications of Blockchain technology, its impact on
innovation, its potential for jobs and economic growth, energy consump-
tion, environmental issues, and competition in order to supplement the
Bitlicense with the correct legislative framework. New York must be a
state where: (1) consumers and investors are safeguarded, (2) money
laundering is prevented, (3) New Yorkers are protected from unscrupulous
users and actors, (4) employment and economic growth are promoted, (5)
blockchain technology uses are considered, and (6) environmental damage
is minimized.
 
PRIOR LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
Minimal
 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed repealed on
December 15, 2024.