Assemblyman Clyde Vanel, who is the prime sponsor of the bill, made the announcement. Clyde further elaborated that the task force has been given the assignment of studying blockchain technology. They will study all cryptocurrencies and other digital assets in order to arrive at the best new market regulations.
2019 could be the year of crypto-regulation and New York seems to have taken the step in that direction. The task force consists of institutional and retail investors, technologists, business representatives and academics, and consumers.
The Senate, Parliament and Governor Cuomo shall select the members of the task force. The panel will present its New Technology reports by 15 December 2020.
The required reports will contain suggestions as to how cryptocurrencies can best be regulated, defined and made use of. The task force will also estimate the costs of cryptocurrencies mining and how crypto-trade takes place in the state. For the state government, the innovation’s impact on tax collection is also a matter of concern.
New York has already established a benchmark regulation for crypto related firms summarized in the controversial BitLicense. Only fourteen licenses have been issued since the regulation was introduced four years ago. The press release of Vanel acknowledged that the cryptographic domain has changed considerably since this regulation was introduced.
The report also documents the impact of the regulations on blockchain and cryptocurrencies in New York. Several commentators agree that blockchain technology will in future have an effect on finance and other global industries. Vanel commented:
“New York leads the entire country in finance. We will also lead in appropriate fintech regulation. The task force of experts will help us strike the balance between a robust blockchain industry and cryptocurrency economic environment. While at the same time, protect New York investors and consumers.”
In late 2017, Vanel suggested the creation of this task force. In December 2017, he introduced the bill together with several other measures. All these efforts were intended to enable the state government to understand and use blockchain and cryptocurrency technologies. Fellow Assemblyman Ed Ra noted that:
“New York must suitably balance consumer protection with creating an excellent environment ripe for investment and innovation in New York State. Summoning experts and stakeholders is a good step forward and I thank Assemblyman Vanel for this intelligent leadership on this issue.”
Lawmakers opine that before regulating, a thorough understanding of cryptocurrency is required. The United States Last year, the House of Representatives also adopted a bill suggesting a similar task force to deal with financial crimes. This bill is currently waiting for the US Senate. California and Ohio are other states that open up to the immense potential of blockchain technology.