New York Legislature Proposes Creation of Crypto Task Force

The past few weeks have been rife with extended efforts to regulate and control cryptocurrencies and New York has become the newest entity to launch its own efforts towards the same. The state’s legislature may soon send a cryptocurrency task force to investigate and report on the current state of global cryptocurrency as well as blockchain utility and legislation.

This move is part of the efforts by the state to establish formal cryptocurrency rules that could, in turn, contribute immensely to the widespread adoption and subsequent mainstream use of cryptocurrencies. The nine-person task force will be expected to provide a detailed report of their findings by December 2019 as stipulated in the summary from a meeting that was held on May 30.

New York has always been at the forefront of the cryptocurrency revolution with a number of innovation-focused approaches to digital currencies and blockchain technology. In fact, the state is hoping to capitalize on various new developments that will eventually make it a leader in blockchain technology.

As such, there is a need for cryptocurrency rules and guidelines so as to bring awareness to the users. This essentially makes the case for why the task force that was launched by the New York State Assembly. A report is expected from the Cryptocurrency Task Force department by 15 December 2019 – the report will be received by the governor who is the temporary Senate president and the speaker of the state assembly.

What Is Expected of the Task Force?

As reported by an official document was released by the New York Assembly tasking the Cryptocurrency Task Force to report back on, among many other areas, the following key points:

  • Review of the impact of the department of financial services’ regulations on the development of digital currency, cryptocurrency and blockchain industries in New York State.
  • The number of digital currencies presently being listed and their approximate proportion of market share.
  • Report on the number of exchange happening in New York and their average trade per month.
  • Impact of cryptocurrency on state and local tax receipts.
  • Different types of departments who are investing in cryptocurrency.
  • The energy consumption necessary for coin mining operations and other policy considerations related thereto;
  • The transparency of the digital currency marketplace and the related potential of market manipulation and other illegal activities.
  • A review of laws and regulations on the digital currencies used by other states, the federal government, foreign countries, and foreign political and economic unions to regulate the marketplace.
  • Legislative and regulatory recommendations, if any, to increase transparency and security, enhance consumer protections, and to address the long-term impact related to the use of cryptocurrency.

New York is among the growing number of states that are spearheading the gradual transition towards better understanding and the inevitable widespread adoption of the burgeoning technology.

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