NY State Senate Bill S7724

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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view actions (1)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 13, 2018	referred to banks

Co-Sponsors

S7724 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Financial Services
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4593
2021-2022: S5044

S7724 (ACTIVE) - Summary

Creates the digital currency task force to provide the governor and the legislature with information on the potential effects of the widespread implementation of digital currencies on financial markets in the state.

S7724 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S7724

SPONSOR: PARKER
 
TITLE OF BILL:  An act to establish the digital currency task force

 
PURPOSE OR GENERAL IDEA OF BILL:

Establishes a commission to study how to regulate cryptocurrencies in
New York State

 
SUMMARY OF PROVISIONS:

Section 1 authorizes the department of financial services to establish a
New York State digital currency task force.

Section 2 states who the task force shall be comprised of.

Section 3 lists the responsibilities and roles of the taskforce.

Section 4 explains who the taskforce will work and collaborate with.

Section 5 addresses when the taskforce must submit their final report.

 
JUSTIFICATION:

It is arguable that New York remains as the global financial capital
center. We must make sure that we help foster an environment to lead the
world in the finance sector. Today, the New York Stock Exchange and
NASDAQ are two of the most valuable stock exchanges in the world.  In
New York State, the financial sector makes up over eighteen percent of
our tax revenue and is the state's premiere economic engine.

We, however, are not guaranteed to remain the world financial leader.
In fact in this economic environment, we are competing for financial
investments and our standing the fiscal leader with London, Japan, Shan-
ghai and Hong Kong. In this digital and technological environment,
however, New York is competing with virtually every global market and
cur states for future financial transactions and activities. California,
Nevada and Delaware are gaining penetration for cryptocurrency invest-
ments and transactions.

Cryptocurrencies are making their way into the New York state digital
economy. A growing number of merchants accept cryptocurrency as payment
including Microsoft, Expedia.com, Dell, Overstock.com, Reddit, Subway
and Bloomberg.com. Companies and investors are raising capital and fund-
ing through Initial Coin Offerings (IC0).  Additionally, there are cryp-
tocurrency ATMs across the state where New Yorkers are purchasing denom-
inations of cryptocurrencies at conveniences stores and public places.

According to Wikipedia, "a cryptocurrency is a digital asset designed to
work as a medium of exchange using cryptography to secure the trans-
actions and to control the creation of additional units of the curren-
cy... Bitcoin, created in 2009, was the first decentralized cryptocur-
rency." The virtue and danger of cryptocurrency is its anonymity and
decentralized model. As a state we must protect anti-money laundering,
know-your-customer laws and consumer and investor protections.

In 2015, The New York State Department of Financial Services (DFS)
promulgated the Bitlicense, which is a business license for virtual
currency activities in New York State. The regulations are limited to
New York State activities. Since 2015, DFS has awarded 5 Bitlicenses.

In order to supplement the Bitlicense with the proper legislative frame-
work, we must fully understand the implications of blockchain technolo-
gy, its impact on innovation, competition and regulation. New York must
be a state where: (1) consumers and investors are protected, (2) we
prevent money laundering and (3) we know the customer to protect from
nefarious uses and actors. At the same time, New York must lead the
world in legitimate digital and cryptocurrency investments and trans-
actions.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
EFFECTIVE DATE:
Effective immediately.

S7724 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7724

                            I N  S E N A T E

                            February 13, 2018
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to establish the digital currency task force

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The department of financial services is hereby authorized
to establish the New York state digital currency task force  to  provide
the  governor  and  the  legislature  with  information on the potential
effects of the widespread implementation of digital currencies on finan-
cial markets in the state.
  § 2. The task force shall be comprised of:
  a. two members appointed by the governor;
  b. two members appointed by the temporary president of the senate;
  c. two members appointed by the speaker of the assembly;
  d. one member appointed by the minority leader of the senate;
  e. one member appointed by the minority leader of the assembly; and
  f. two members appointed by the superintendent of  the  department  of
financial services.
  § 3. The task force shall:
  a. examine and evaluate digital currencies within the state;
  b.  identify the potential effects of the widespread implementation of
digital currencies on financial markets;
  c. review the impact of the department's BitLicense program on the use
of digital currencies; and
  d. make recommendations to further utilize digital  currencies  within
the state.
  § 4. Such task force shall collaborate with state and city of New York
agencies  including,  but not limited to, the department of taxation and
finance and the department of finance of the city of New York.
  § 5. The department of financial services shall submit a report, on or
before January 1, 2019, to the governor and the legislature of its find-
ings, conclusions and recommendations, and  legislative  and  regulatory
proposals deemed necessary to implement such recommendations.
  § 6. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD13663-02-7

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The New York State Senate

senate Bill S7724

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

Your Voice

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Co-Sponsors

S7724 (ACTIVE) - Details

S7724 (ACTIVE) - Summary

S7724 (ACTIVE) - Sponsor Memo

S7724 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S7724

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Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Banks Committee

Your Voice

Actions

Co-Sponsors

Luis R. Sepúlveda

S7724 (ACTIVE) - Details

S7724 (ACTIVE) - Summary

S7724 (ACTIVE) - Sponsor Memo

S7724 (ACTIVE) - Bill Text download pdf

Comments