YEREVAN (CoinChapter.com) — New York Senator James Sanders Jr. introduced the New York State Cryptocurrency and Blockchain Study Act on Feb. 12. The bill seeks to create a 17-member crypto task force to investigate the current state of cryptocurrencies in New York. The study will examine the impact of digital assets on the economy, taxation, and regulatory framework.
The task force will focus on key areas, including the number of cryptocurrencies being traded, the number of crypto exchanges in New York, and how digital assets affect state and local tax revenue. It will also review cryptocurrency regulation and compare New York’s policies with other jurisdictions.
Crypto Exchanges in New York and Regulatory Challenges
New York has been a major hub for crypto exchanges, but its BitLicense program, launched in 2015, has received criticism from industry leaders. Businesses operating in cryptocurrency trading and digital asset services must obtain a BitLicense from the New York Department of Financial Services (NYDFS).
The high licensing fees and strict compliance requirements have led to concerns that the framework restricts crypto business growth in the state. Even Mayor Eric Adams has called for changes, citing the need for a more flexible approach to cryptocurrency regulation. The task force will evaluate these concerns and recommend possible legislative actions.
Environmental Impact of Crypto and Energy Consumption
The bill also mandates a study on the environmental impact of crypto mining in New York. The task force will examine energy consumption, sustainability practices, and the long-term effects of crypto mining operations.
New York has already implemented restrictions on certain crypto mining activities, with some facilities facing limitations due to concerns over high energy use. The report will provide data on whether existing policies are effective and how they compare to other states.
Crypto Tax Revenue and Economic Influence
The study will assess the effects of cryptocurrencies on state and local tax revenue. Lawmakers aim to understand how digital assets contribute to or impact traditional revenue sources.
Crypto-related businesses generate revenue through trading, investments, and blockchain technology services. The task force will collect data on these financial flows to determine whether additional regulatory measures are necessary.
Deadline for Task Force Report Set for 2027
If enacted, the bill requires the task force to be appointed within 90 days. Members will submit their findings and recommendations by Dec. 15, 2027, to the New York governor and the legislature.
The report will suggest potential policy changes, regulatory updates, and security measures to address risks in the crypto sector. It will also evaluate consumer protection strategies and financial transparency in digital asset transactions.
US States Increasing Crypto Legislation Efforts
More than 20 US states are actively considering crypto investment legislation. Arizona and Utah have advanced crypto-related bills beyond the House committee level, according to Bitcoin Reserve Monitor.
Additionally, asset manager VanEck estimates that if all proposed bills pass, the demand for Bitcoin (BTC) could rise by $23 billion. Over 150 public and private entities are already accumulating Bitcoin, viewing it as a store of value against economic uncertainty, according to BitcoinTreasuries.NET.
New York’s efforts to regulate cryptocurrency trading and blockchain technology could influence similar legislative actions in other states, shaping the future of crypto regulation across the US.
