NY State Senate Bill 2023-S1891

Senate Bill S1891

Vetoed By Governor

2023-2024 Legislative Session

Establishes the New York state cryptocurrency and blockchain study task force

download bill text pdf

Current Bill Status - Vetoed by Governor

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

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 17, 2023	vetoed memo.71
Nov 13, 2023	delivered to governor
Jun 05, 2023	returned to senate passed assembly
May 30, 2023	ordered to third reading rules cal.319 substituted for a954
May 15, 2023	referred to banks delivered to assembly passed senate
May 01, 2023	advanced to third reading
Apr 26, 2023	2nd report cal.
Apr 25, 2023	1st report cal.664
Jan 17, 2023	referred to banks

Votes

- May 15, 2023 - Floor Vote
  S1891
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 15, 2023
      
      aye (60)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (3)
      
      Cooney
      
      Gounardes
      
      Sepúlveda
  Apr 25, 2023 - Banks Committee Vote
  S1891
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Banks Committee Vote: Apr 25, 2023
      
      aye (5)
      
      Borrello
      
      Cleare
      
      Kennedy
      
      Parker
      
      Sanders Jr.
      
      aye wr (2)
      
      Brisport
      
      Tedisco

co-Sponsors

View additional co-sponsors

2023-S1891 (ACTIVE) - Details

See Assembly Version of this Bill:: A954
Law Section:: Financial Services
Versions Introduced in 2021-2022 Legislative Session:: S8343, A9275

2023-S1891 (ACTIVE) - Summary

Establishes the New York state cryptocurrency and blockchain study 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 limited to blockchain technology, in the state.

2023-S1891 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1891

SPONSOR: SANDERS
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

Establishes the New York state cryptocurrency and blockchain study task
force.

 
SUMMARY OF PROVISIONS:

Section 1 short title

Section 2 authorizes the department of financial services to establish a
New York State cryptocurrency and blockchain study task force.

Section 3 states who the task force shall be comprised of.

Section 4 lists the responsibilities and roles of the taskforce.

Section 5 is the effective date and the repeal date of this act.

 
JUSTIFICATION:

New York is arguably the financial capital of the world, and we must
ensure that we help foster the creation of an environment that allows us
to continue to lead the world in the financial sector; the New York
Stock Exchange and the NASDAQ are two of the world's most valued stock
exchanges and the financial industry accounts for nearly twenty percent
of New York State's tax revenue.

However, it is not guaranteed that we will continue to be the world's
financial leader. In reality, in the current economic environment, we
are competing with London, Tokyo, Shanghai, and Hong Kong for financial
investments and our position as a fiscal leader. In current digital and
technological world, New York is vying for future financial transactions
and activity with almost every global market and state.

Cryptocurrencies have been making inroads into New York's digital econo-
my over the last decade. A rising number of businesses around the state
are accepting cryptocurrencies as payment. Throughout the state, there
are a number of cryptocurrency-related investments and investment compa-
nies. Furthermore, our state hosts a substantial proportion of block-
chain mining.

Blockchain is the technology that undergirds the industry. Its benefits
include decentralization, immutable security, and transparency amongst
other things. New York State should consider the uses of the technology.

The Bitlicense, which is a business license for virtual currency activ-
ities in New York State, was promulgated by the New York State Depart-
ment of Financial Services (NYSDFS) in 2015. We must thoroughly compre-
hend the implications of Blockchain technology, its impact on
innovation, its potential for jobs and economic growth, energy consump-
tion, environmental issues, and competition in order to supplement the
Bitlicense with the correct legislative framework.

New York must be a state where: (1) consumers and investors are safe-
guarded, (2) money laundering is prevented, (3) New Yorkers are
protected from unscrupulous users and actors, (4) employment and econom-
ic growth are promoted, (5) blockchain technology uses are considered,
and (6) environmental damage is minimized.

 
PRIOR LEGISLATIVE HISTORY:

2022 PASSED SENATE

2022 PASSED ASSEMBLY

 
FISCAL IMPLICATIONS:

Minimal

 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed repealed on
December 15, 2024.

2023-S1891 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1891
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2023
                                ___________
 
 Introduced  by  Sens.  SANDERS,  ADDABBO, COMRIE, COONEY, HARCKHAM, MAY,
   MYRIE, SEPULVEDA -- read twice and ordered printed, and  when  printed
   to be committed 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03808-01-3

 S. 1891                             2
 
   d. four members appointed by the speaker of the assembly.
   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.

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