S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4728--A
     Cal. No. 391
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2025
                                ___________
 
 Introduced  by  Sens.  SANDERS,  COONEY,  WEBB -- read twice and ordered
   printed, and when printed to be committed to the Committee on Banks --
   reported favorably from said committee, ordered to  first  and  second
   report,  ordered to a third reading, passed by Senate and delivered to
   the Assembly, recalled, vote reconsidered, restored to third  reading,
   amended  and  ordered  reprinted,  retaining its place in the order of
   third reading
 
 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") within the department  of  financial  services  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.
   § 3. 1. The task force shall consist of sixteen members as follows:
   a.  six  members  appointed  by  the governor, which shall include the
 following:
   i. the superintendent of the department of financial services, or such
 superintendent's designee;
   ii. the commissioner of the department of environmental  conservation,
 or such commissioner's designee;
   iii.  the  commissioner of taxation and finance or such commissioner's
 designee;
   iv. a representative from the financial services industry;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06929-03-5
 S. 4728--A                          2
 
   v. a representative from a state or  national  organization  promoting
 environmental conservation; and
   vi.  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  the  comptroller's
 designee;
   c.  four  members  appointed by the temporary president of the senate,
 two of which are representatives from two separate cryptocurrency  trade
 groups, organizations, or companies;
   d. four members appointed by the speaker of the assembly, two of which
 are  representatives  from  two  separate  cryptocurrency  trade groups,
 organizations, or companies; and
   e. the attorney general of the state of  New  York,  or  the  attorney
 general's designee.
   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
 four 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, 2027, 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,  2027 when upon such date the provisions of this act shall be deemed
 repealed.