S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    954
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 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:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York state cryptocurrency and blockchain study act".
   § 2. There is hereby established the New York state cryptocurrency and
 blockchain  study  task  force  (hereinafter  referred  to  as "the task
 force") to provide the governor and the legislature with information  on
 the effects of the widespread use of cryptocurrencies and other forms of
 digital currencies and their ancillary systems, including but not limit-
 ed to blockchain technology, in the state.
   § 3. 1. The task force shall consist of sixteen members as follows:
   a.  seven  members  appointed by the governor, which shall include the
 following five members:
   i. the superintendent of the department of financial services, or  his
 or her designee;
   ii.  the commissioner of the department of environmental conservation,
 or his or her designee;
   iii. a representative from the financial services industry;
   iv. a representative from a state or national  organization  promoting
 environmental conservation; and
   v.  a  representative who is a faculty member of an accredited college
 or university in New York state with experience in economic studies.
   b. the comptroller of the State of New York, or his or her designee.
   c. four members appointed by the temporary president  of  the  senate;
 and
   d. four members appointed by the speaker of the assembly.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03808-01-3
              

 A. 954                              2
 
   2.  To  the  extent  practicable,  members appointed to the task force
 shall have relevant experience  and  knowledge  concerning  the  digital
 currency, cryptocurrency and blockchain industries.
   3.  The  members  of  the task force shall receive no compensation for
 their services, but shall be allowed their actual and necessary expenses
 incurred in the performance of their duties pursuant to this act.
   4. Any vacancies in the membership of the task force shall  be  filled
 in the same manner provided for in the initial appointment.
   5.  The task force may consult with any organization, government enti-
 ty, or person, in the development of its report required under section 4
 of this act.
   6. The members of the task force shall  be  appointed  no  later  than
 ninety days after the effective date of this act.
   §  4.  On  or before December 15, 2025, the task force shall submit to
 the governor, the temporary president of the senate and the  speaker  of
 the  assembly  a  report  containing,  but not limited to, the following
 information based on available data:
   a. a review of the digital  currency,  cryptocurrency  and  blockchain
 industries in New York state;
   b.  the  number of digital currencies currently being traded and their
 approximate percentage of market share;
   c. the number of exchanges operating in New York state and their aver-
 age monthly trade volume;
   d. the use of digital  currencies'  impact  on  state  and  local  tax
 receipts;
   e.  the  types  of  investment  entities  that  are large investors in
 digital currency;
   f. the energy consumption necessary for  coin  mining  operations  and
 other policy considerations related thereto;
   g. the environmental impact of coin mining operations;
   h.  the  transparency  of  the  digital  currency  marketplace and the
 related potential of market manipulation and other illegal activities;
   i. a review of laws and regulations on digital currency used by  other
 states, the federal government, foreign countries, and foreign political
 and economic unions to regulate the marketplace; and
   j.  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.
   §  5. This act shall take effect immediately and shall expire December
 15, 2025 when upon such date the provisions of this act shall be  deemed
 repealed.