It was revealed today by NYS Assembly Member Clyde Vanel in a Facebook post that NYS Governor Andrew Cuomo signed into law The Digital Currency Study Bill, A8783B/S9013, in the last week of December 2018. This bill establishes the Digital Currency Task Force and positions New York as the first state in the nation to create a cryptocurrency task force to study how to properly regulate, define and use cryptocurrency.
The nine members of the task force, appointed by the Governor, Senate and Assembly, are to submit reports by December 15, 2020. The members will include stakeholders such as, technologists, consumers, institutional and small investors, large and small blockchain enterprises and academics. The group shall report on digital currency, cryptocurrency and blockchain technology. Here is a full breakdown of the task force’s responsibilities:
- A review of the digital currency, cryptocurrency and blockchain industries in New York state
- The number of digital currencies currently being traded and their approximate percentage of market share
- The number of exchanges operating in New York state and their average monthly trade volume
- The use of digital currencies’ impact on state and local tax receipts
- The types of investment firms that are large investors of cryptocurrencies
- 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 digital currency used by other 12 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.
This is a great sign and win for the crypto and blockchain industry as government support and regularity clarity is much needed. Currently, the Token Taxonomy Act is being reviewed by Congress and Ohio has started accepting crypto for tax payments.
We expect many other states will certainly follow this move to help them better understand and cultivate an environment for the crypto and blockchain boom. This new tech boom will certainly create new jobs and generate more tax revenue.