Assembly Bill A10505

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10505
 
                           I N  A S S E M B L Y
 
                               March 6, 2026
                                ___________
 
 Introduced by M. of A. ANDERSON -- read once and referred to the Commit-
   tee on Insurance
 
 AN  ACT  directing  the  superintendent  of  the department of financial
   services to conduct a study on the utilization of the  cryptocurrency,
   bitcoin, for the purchasing of life insurance and annuities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent. The legislature recognizes  that  there
 are  tremendous  benefits to New Yorkers who have embraced bitcoin as an
 asset, including wealth preservation and growth, simplified estate plan-
 ning and diversification of financial strategy.  As  the  world  economy
 continues  to  evolve,  New  Yorkers  should have the ability to utilize
 bitcoin to make the best financial decisions  available  to  them.  This
 legislation  will direct the department of financial services to conduct
 a comprehensive study focusing on a legislative proposal to provide  for
 the  availability  and  oversight  of bitcoin-denominated life insurance
 policies for any New York state resident who wishes to acquire one.
   § 2. The superintendent of the department of financial services  shall
 conduct  a  study on the utilization of the cryptocurrency, bitcoin, for
 the purchasing of life insurance. Such  services  to  be  studied  shall
 include, but not be limited to, the following subject areas:
   a.  an  assessment  of bitcoin's qualification as an admitted asset to
 back policyholder and contract holder obligations;
   b. the creation of statutory  authority  for  life  insurers  to  hold
 bitcoin as a permitted investment for both life and annuity reserves;
   c.  the  creation  of an actuarial framework for calculating and main-
 taining reserves  on  bitcoin-denominated  life  insurance  and  annuity
 liabilities;
   d.  the  creation  of  alternative  methodology for guaranteed minimum
 values when life insurance  and  annuity  benefits  are  denominated  in
 bitcoin;
   e. the promulgation of proposed rules and regulations regarding ceding
 insurers  taking  reserve  credit for reinsurance of bitcoin-denominated
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15125-01-6
              

 A. 10505                            2
 
 life and annuity  liabilities,  and  collateral  requirements  for  such
 arrangements;
   f.  the creation of appropriate minimum capital and risk-based capital
 charges for a bitcoin-focused life and annuity carrier;
   g. the creation  of  policy  and  contract  form  standards,  required
 disclosures,  and  suitability criteria for bitcoin-denominated life and
 annuity products;
   h. the promulgation of proposed rules and regulations for coordinating
 insurance charter with bitlicense requirements under  single  regulatory
 oversight;
   i. an assessment of how bitcoin life insurance policyholders and annu-
 ity  contract  holders are protected by the life insurance guaranty fund
 in the event of carrier insolvency; and
   j. the promulgation of proposed  rules  and  regulations  regarding  a
 pilot program for the implementation of such program.
   §  3. The superintendent of the department of financial services shall
 report and publish  on  the  department's  website,  and  transmit  such
 commissioners' findings and recommendations to the governor, the speaker
 of  the  assembly,  the  minority  leader of the assembly, the temporary
 president of the senate and the minority leader  of  the  senate  on  or
 before eighteen months after the effective date of this act.
   § 4. This act shall take effect immediately.