NY State Senate Bill 2021-S7272

Senate Bill S7272

2021-2022 Legislative Session

Relates to reporting of cryptocurrency holdings on the annual statement of financial disclosure

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2022	committed to rules
Jan 31, 2022	advanced to third reading
Jan 26, 2022	2nd report cal.
Jan 25, 2022	1st report cal.343
Jan 05, 2022	referred to ethics and internal governance
Jul 02, 2021	referred to rules

Votes

- Jan 25, 2022 - Ethics And Internal Governance Committee Vote
  S7272
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Ethics And Internal Governance Committee Vote: Jan 25, 2022
      
      aye (5)
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Kaminsky
      
      Stavisky
      
      aye wr (2)
      
      Lanza
      
      Palumbo

co-Sponsors

2021-S7272 (ACTIVE) - Details

See Assembly Version of this Bill:: A9086
Current Committee:: Senate Rules
Law Section:: Public Officers Law
Laws Affected:: Amd §73-a, Pub Off L
Versions Introduced in 2023-2024 Legislative Session:: S5621, A2873

2021-S7272 (ACTIVE) - Summary

Relates to reporting of cryptocurrency holdings on the annual statement of financial disclosure filed with the legislative ethics commission or the joint commission on public ethics.

2021-S7272 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7272

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the public officers law, in relation to reporting of
cryptocurrency holdings on the annual statement of financial disclosure

 
PURPOSE:

The purpose of this bill is to close the loophole on cryptocurrency
assets, like bitcoin, on the state's financial disclosure statement and
add transparency regarding individuals' interest in this type of digital
financial property.

 
SUMMARY OF PROVISIONS:

A new paragraph 16-a is added to subdivision 3 of section 73-a of the
public officers law to require the reporting of type and market value of
cryptocurrencies held by the reporting individual, in excess of $1,000
at the close of the taxable year prior to the date of filing.

For purposes of the bill, "cryptocurrency" is defined as a digital
currency in which encryption techniques are used to regulate the gener-
ation of units and currency and verify the transfer of funds, operating
independently of a central bank.

 
JUSTIFICATION:

In 2014 the Internal Revenue Service (IRS) ruled that the first non-cen-
tral bank digital cryptocurrency, known as bitcoin, be treated as prop-
erty for tax purposes. This meant that bitcoin would, henceforth, be
subject to capital gains tax. In July 2019, the IRS started sending
letters to cryptocurrency owners warning them to amend their returns and
pay taxes. Additionally, academic research has shown that bitcoin has
some characteristics more like the precious metals market than tradi-
tional currencies, signaling agreement with the IRS decision even if
based on different reasons.  Source:
https://en.wikipedia.org/wiki/Cryptocurrency

Because cryptocurrency transactions can be made anonymously, they are
difficult to track and to regulate. They are increasingly popular tools
for cybercrimes and "ransomware," a kind of digital hijacking.  The
recent shutdown of the Colonial natural gas pipeline in the US southeast
was an international cyberattack by hackers who demanded payment via
cryptocurrency. This type of digital asset is designed to work as a
medium of exchange of units called "coins". The coins are stored in a
ledger existing in a form of a computerized database and is called a
"blockchain". Cryptocurrency does not exist in physical form (like paper
money) and is typically not issued by a central authority. Bitcoin is
the first decentralized cryptocurrency. Since the release of bitcoin,
many other cryptocurrencies have been created.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
January 1st after enactment

2021-S7272 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7272
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               July 2, 2021
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public officers law, in  relation  to  reporting  of
   cryptocurrency  holdings  on the annual statement of financial disclo-
   sure

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 73-a of the public officers law is
 amended by adding a new paragraph 16-a to read as follows:
   16-A. LIST BELOW THE TYPE AND MARKET VALUE OF CRYPTOCURRENCIES HELD BY
 THE REPORTING INDIVIDUAL OR SUCH INDIVIDUAL'S SPOUSE IN EXCESS OF $1,000
 AT  THE  CLOSE  OF  THE TAXABLE YEAR LAST OCCURRING PRIOR TO THE DATE OF
 FILING. WHENEVER AN INTEREST IN CRYPTOCURRENCIES EXISTS THROUGH A  BENE-
 FICIAL  INTEREST  IN  A  TRUST,  THE CRYPTOCURRENCIES HELD IN SUCH TRUST
 SHALL BE LISTED ONLY IF THE REPORTING INDIVIDUAL HAS  KNOWLEDGE  THEREOF
 EXCEPT  WHERE  THE  REPORTING  INDIVIDUAL  OR THE REPORTING INDIVIDUAL'S
 SPOUSE HAS TRANSFERRED ASSETS TO SUCH TRUST FOR HIS OR  HER  BENEFIT  IN
 WHICH  EVENT  SUCH  CRYPTOCURRENCIES SHALL BE LISTED UNLESS THEY ARE NOT
 ASCERTAINABLE BY THE REPORTING INDIVIDUAL BECAUSE THE TRUSTEE  IS  UNDER
 AN  OBLIGATION  OR  HAS  BEEN  INSTRUCTED IN WRITING NOT TO DISCLOSE THE
 CONTENTS OF THE TRUST TO THE REPORTING INDIVIDUAL.  CRYPTOCURRENCIES  OF
 WHICH  THE  REPORTING INDIVIDUAL OR THE REPORTING INDIVIDUAL'S SPOUSE IS
 THE OWNER OF RECORD BUT IN WHICH SUCH INDIVIDUAL OR THE REPORTING  INDI-
 VIDUAL'S  SPOUSE  HAS  NO  BENEFICIAL INTEREST SHALL NOT BE LISTED. ALSO
 LIST CRYPTOCURRENCIES OWNED FOR INVESTMENT  PURPOSES  BY  A  CORPORATION
 MORE  THAN  FIFTY  PERCENT  (50%)  OF  THE  STOCK  OF  WHICH IS OWNED OR
 CONTROLLED BY THE REPORTING INDIVIDUAL OR SUCH INDIVIDUAL'S SPOUSE.  FOR
 THE PURPOSES OF THIS ITEM THE TERM "CRYPTOCURRENCY" SHALL MEAN A DIGITAL
 CURRENCY  IN WHICH ENCRYPTION TECHNIQUES ARE USED TO REGULATE THE GENER-
 ATION OF UNITS AND CURRENCY AND VERIFY THE TRANSFER OF FUNDS,  OPERATING
 INDEPENDENTLY FROM A CENTRAL BANK.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11844-01-1

 S. 7272                             2
 
                                         CATEGORY OF
                                         MARKET VALUE
                                         AS OF THE CLOSE
                                         OF THE TAXABLE
                                         YEAR LAST
                                         OCCURRING
                                         PRIOR TO
   SELF/        TYPE OF                  THE FILING OF
   SPOUSE       CRYPTOCURRENCY           THIS STATEMENT
                                         (IN TABLE II)
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
 _______________________________________________________________________
   §  2. This act shall take effect on the first of January next succeed-
 ing the date upon which it shall have become a law.

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Senate Bill S7272

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Sponsored By

Rachel May