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New York Eyes Crypto Task Force Amid Shifting Federal Policies

Coin WorldThursday, Feb 13, 2025 1:53 am ET

1min read

New York State Senator James Sanders Jr. (D-N.Y.) has introduced a bill to establish a crypto task force, as the state reassesses its regulatory stance amid shifting federal policies affecting the cryptocurrency industry. The bill, currently under review by a Senate committee, seeks to investigate the impact of cryptocurrencies on state revenue, environmental impact, and market transparency.

The proposed 17-member panel would include representatives from the Department of Financial Services, environmental conservation groups, and academic experts in economics. Members would serve without compensation but receive expense reimbursements. The task force would be appointed within 90 days of the bill's effective date, with findings expected to inform future crypto policy in New York, which Sanders describes as "arguably the financial capital of the world."

The task force would examine New York's position among 20 other U.S. states considering cryptocurrency investment legislation. According to VanEck's head of digital assets research, Matthew Sigel, these efforts could drive $23 billion in Bitcoin demand. New York enforces some of the toughest crypto regulations in the U.S., largely due to its BitLicense framework implemented in 2015. The state's Department of Financial Services (NYDFS) regulates crypto businesses, requiring them to secure a BitLicense or a limited-purpose trust charter to operate.

Sanders also cites blockchain technology's impact on innovation, jobs, economic growth, energy consumption, and environmental issues as a reason to study it. He believes that the BitLicense should be supplemented with the correct legislative framework. New York is competing with global financial hubs like London, Tokyo, Shanghai, and Hong Kong for financial investments and its position as a fiscal leader. The state is vying for future financial transactions and activity, with almost every global market and state considering similar initiatives.

This is not the first time New York has looked into cryptocurrency and its potential to bolster the city's standing. In 2019, the state enacted legislation to establish the New York State Cryptocurrency and Blockchain Study Task Force, signed by then-Governor Andrew Cuomo. Despite its establishment, the task force was never convened, and its objectives remained unfulfilled. In 2023, the state revisited a similar initiative, passing a bill that sought to re-establish the task force. However, Governor Kathy Hochul vetoed the bill.

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