STATE OF NEW YORK ________________________________________________________________________ 9275 IN ASSEMBLY February 9, 2022 ___________ Introduced by M. of A. VANEL -- read once and referred to the Committee on Banks AN ACT in relation to establishing the New York state cryptocurrency and blockchain study task force; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "New York state cryptocurrency and blockchain study act". 3 § 2. There is hereby established the New York state cryptocurrency and 4 blockchain study task force (hereinafter referred to as "the task 5 force") to provide the governor and the legislature with information on 6 the effects of the widespread use of cryptocurrencies and other forms of 7 digital currencies and their ancillary systems, including but not limit- 8 ed to blockchain technology, in the state. 9 § 3. 1. The task force shall consist of sixteen members as follows: 10 a. seven members appointed by the governor, which shall include the 11 following five members: 12 i. the superintendent of the department of financial services, or his 13 or her designee; 14 ii. the commissioner of the department of environmental conservation, 15 or his or her designee; 16 iii. a representative from the financial services industry; 17 iv. a representative from a state or national organization promoting 18 environmental conservation; and 19 v. a representative who is a faculty member of an accredited college 20 or university in New York state with experience in economic studies. 21 b. the comptroller of the State of New York, or his or her designee. 22 c. four members appointed by the temporary president of the senate; 23 and 24 d. four members appointed by the speaker of the assembly. 25 2. To the extent practicable, members appointed to the task force 26 shall have relevant experience and knowledge concerning the digital 27 currency, cryptocurrency and blockchain industries. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14668-01-2A. 9275 2 1 3. The members of the task force shall receive no compensation for 2 their services, but shall be allowed their actual and necessary expenses 3 incurred in the performance of their duties pursuant to this act. 4 4. Any vacancies in the membership of the task force shall be filled 5 in the same manner provided for in the initial appointment. 6 5. The task force may consult with any organization, government enti- 7 ty, or person, in the development of its report required under section 4 8 of this act. 9 6. The members of the task force shall be appointed no later than 10 ninety days after the effective date of this act. 11 § 4. On or before December 15, 2024, the task force shall submit to 12 the governor, the temporary president of the senate and the speaker of 13 the assembly a report containing, but not limited to, the following 14 information based on available data: 15 a. a review of the digital currency, cryptocurrency and blockchain 16 industries in New York state; 17 b. the number of digital currencies currently being traded and their 18 approximate percentage of market share; 19 c. the number of exchanges operating in New York state and their aver- 20 age monthly trade volume; 21 d. the use of digital currencies' impact on state and local tax 22 receipts; 23 e. the types of investment entities that are large investors in 24 digital currency; 25 f. the energy consumption necessary for coin mining operations and 26 other policy considerations related thereto; 27 g. the environmental impact of coin mining operations; 28 h. the transparency of the digital currency marketplace and the 29 related potential of market manipulation and other illegal activities; 30 i. a review of laws and regulations on digital currency used by other 31 states, the federal government, foreign countries, and foreign political 32 and economic unions to regulate the marketplace; and 33 j. legislative and regulatory recommendations, if any, to increase 34 transparency and security, enhance consumer protections, and to address 35 the long-term impact related to the use of cryptocurrency. 36 § 5. This act shall take effect immediately and shall expire December 37 15, 2024 when upon such date the provisions of this act shall be deemed 38 repealed.