Cryptocurrency Task Force Proposed By New York State Assembly

News, Regulation | June 6, 2018 By:

The New York State Assembly has proposed launching a digital currency task force to investigate the potential effects of the widespread implementation of cryptocurrencies on financial markets in the state.

On May 30, the legislature’s banks committee voted to advance the bill to the ways and means committee. All members present voted in favor of the bill.

If approved, the nine-person task force will be required to submit a report by December 15, 2019 on the impact of the department of financial services’ regulations on the development of cryptocurrency and blockchain industries in the state, the number of digital currencies being traded and their market share, the number of exchanges operating in the state and their average monthly volume.

The task force would also study the effect of cryptocurrency on the state’s tax revenue, the transparency and possible illegal activities of currency marketplaces, and the energy consumption of cryptocurrency mining operations. It would also provide “a review of laws and regulations on digital currency used by other states, the federal government, foreign countries, and foreign political and economic unions to regulate the marketplace.”

The task force seems to be New York’s most recent attempt to gain insight into the burgeoning cryptocurrency and blockchain industries.

In April of this year, an inquiry was launched by the New York State Attorney General’s Office into the operations of 13 cryptocurrency exchanges, including Coinbase and Gemini. Called the “Virtual Markets Integrity Initiative,” the inquiry seeks to improve transparency and accountability of major cryptocurrency trading platforms to protect cryptocurrency investors.