Officially, the New York State became the primary state in the United States which launched a crypto task force which was aimed to help the state how to properly regulate, define, as well as use and understand cryptocurrencies, and their underlying blockchain technology.
Task force for studying cryptocurrencies and other forms of digital currency
The governor of the New York State, Andrew Cuomo, has signed a bill in December, 2018, called The Digital Currency Study Bill, in that way creating the task force to study cryptocurrencies, as well as other forms of digital currency and also blockchain technology, according to one press release issued this Wednesday by the sponsor of the bill, Assemblyman Clyde Venel.
The task force is going to be composed of technologists, consumers, retail and institutional investors, representatives of academics and enterprises too. Venel said that the members are going to be appointed by the governor, and the state Senate and Assembly. The panel is going to be required to submit reports on the technology by the 15th of December, 2020.
These reports, as we already mentioned, are also going to include proposals on how the state may best regulate, utilize or define cryptocurrencies, and sweeping overviews of the space, including the energy cost of the mining process, how cryptos are being traded in the state, how such trades can affect tax collection and a lot of other aspects.
NYS leader in the ‘country of finance’
New York State already developed its own landmark regulation around cryptocurrency businesses in the form of its controversial BitLicense. Just 14 licenses were granted since the management has introduced found years ago.
While the new law is not mentioning update or otherwise change of the license, the press release of Vanel noted that space was altered significantly since the regulation has been written.
Vanel, who is a representative of the Western Bronx and is also the chair of the Subcommittee of the Assembly on Internet and New Technologies, said in a statement that the state already leads the ‘country in finance’ and is going to result in proper fintech regulation as well.
Vanel first proposed the task force later in 2017, introducing the bill in December of that same year, together with many other measures which were aimed at increasing the understanding of the state government of the technology and the possible uses it has.
The bill still sits before the U.S. Senate
Fellow Assemblyman Ed Ra also noted in a statement that the state is going to have to balance consumer protection with encouraging investment, as well as innovation. To that end, he also said that convening experts, as well as stakeholders, are a good step forward.
Lawmakers around the country were acknowledging that to regulate the crypto space, they have first better to understand it. The U.S. House of Representatives claimed the bill in 2018 in which they proposed a similar task force to analyze cryptocurrencies, albeit with a focus on some financial crimes.
The bill is now sitting in front of the U.S. Senate. On a state level, California is likewise forming a blockchain working group which is tasked with studying how the state may use blockchain technology and cryptocurrencies.