Senate Bill S8214

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8214
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 21, 2025
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Ethics and Internal Gover-
   nance
 
 AN ACT to amend the public officers  law,  in  relation  to  prohibiting
   certain  public officials and their families from engaging in unlawful
   virtual currency business activities

   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 "Public Official Virtual Currency Regulation Act".
   § 2. The public officers law is amended by adding a new  section  73-c
 to read as follows:
   §  73-C.  PUBLIC  OFFICIAL  VIRTUAL CURRENCY REGULATION ACT. 1.  DEFI-
 NITIONS. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (A)  "COVERED INDIVIDUAL" MEANS THE GOVERNOR OF THE STATE OF NEW YORK,
 THE LIEUTENANT GOVERNOR OF THE STATE OF NEW YORK, THE COMPTROLLER OF THE
 STATE OF NEW YORK, AND THE ATTORNEY GENERAL OF THE STATE  OF  NEW  YORK,
 PERSON  HOLDING  THE  OFFICE  OF  PRESIDENT OF THE UNITED STATES, OR ANY
 SPOUSE, DOMESTIC PARTNER, CHILD, DEPENDENT, SIBLING, OR  PARENT  OF  ANY
 SUCH OFFICIAL.
   (B)  "COVERED INTEREST" MEANS: (I) AN ENTITLEMENT TO THE PROCEEDS OR A
 PORTION THEREOF, OF THE SALE OR EXCHANGE BY A THIRD-PARTY OF  A  VIRTUAL
 CURRENCY,  INCLUDING BUT NOT LIMITED TO A FEE FOR SUCH SALE OR EXCHANGE;
 (II) AN AGREEMENT TO RECEIVE COMPENSATION, WHETHER MONETARY OR  IN-KIND,
 IN  EXCHANGE FOR THE ENDORSEMENT, SPONSORSHIP, OR PROMOTION OF A VIRTUAL
 CURRENCY; OR (III) OWNERSHIP OF OR ENTITLEMENT TO AN AMOUNT OF A VIRTUAL
 CURRENCY EQUAL TO OR GREATER THAN FIVE PERCENT OF THE  TOTAL  AMOUNT  OF
 SUCH CURRENCY THAT IS AVAILABLE FOR PURCHASE, SALE, OR EXCHANGE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13203-01-5
 S. 8214                             2
 
              

   (C)  "COVERED  VIRTUAL  CURRENCY"  MEANS A VIRTUAL CURRENCY IN WHICH A
 COVERED INDIVIDUAL HAS A COVERED INTEREST, REGARDLESS  OF  WHETHER  SUCH
 INTEREST IS DIRECT, INDIRECT, OR BENEFICIAL.
   (D)  "FIAT  CURRENCY"  MEANS GOVERNMENT-ISSUED CURRENCY THAT IS DESIG-
 NATED AS LEGAL TENDER IN ITS  COUNTRY  OF  ISSUANCE  THROUGH  GOVERNMENT
 DECREE, REGULATION, OR LAW.
   (E)  "PERSON"  MEANS  AN INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI-
 ATION, JOINT STOCK ASSOCIATION, TRUST, OR OTHER ENTITY,  HOWEVER  ORGAN-
 IZED.
   (F)  "VIRTUAL  CURRENCY" MEANS ANY TYPE OF DIGITAL UNIT THAT IS ISSUED
 AS A MEDIUM OF EXCHANGE OR A FORM OF  DIGITALLY  STORED  VALUE.  VIRTUAL
 CURRENCY:
   (I)  SHALL  BE  BROADLY CONSTRUED TO INCLUDE DIGITAL UNITS OF EXCHANGE
 THAT:
   (A) HAVE A CENTRALIZED REPOSITORY OR ADMINISTRATOR;
   (B) ARE DECENTRALIZED AND HAVE NO CENTRALIZED REPOSITORY  OR  ADMINIS-
 TRATOR; OR
   (C)  MAY  BE CREATED OR OBTAINED BY COMPUTING OR MANUFACTURING EFFORT;
 AND
   (II) SHALL NOT BE CONSTRUED TO INCLUDE:
   (A) DIGITAL UNITS THAT: (1) ARE USED SOLELY WITHIN ONLINE GAMING PLAT-
 FORMS; (2) HAVE NO MARKET OR APPLICATION OUTSIDE THOSE GAMING PLATFORMS;
 (3) CANNOT BE CONVERTED INTO OR REDEEMED FOR, FIAT CURRENCY  OR  VIRTUAL
 CURRENCY;  AND  (4)  MAY  OR MAY NOT BE REDEEMABLE FOR REAL-WORLD GOODS,
 SERVICES, DISCOUNTS, OR PURCHASE;
   (B) DIGITAL UNITS THAT CAN BE REDEEMED FOR GOODS, SERVICES, DISCOUNTS,
 OR PURCHASES AS PART OF A CUSTOMER AFFINITY OR REWARDS PROGRAM WITH  THE
 ISSUER  AND/OR OTHER DESIGNATED MERCHANTS OR CAN BE REDEEMED FOR DIGITAL
 UNITS IN ANOTHER CUSTOMER AFFINITY OR REWARDS  PROGRAM,  BUT  CANNOT  BE
 CONVERTED INTO, OR REDEEMED FOR, FIAT CURRENCY OR VIRTUAL CURRENCY; OR
   (C) DIGITAL UNITS USED AS PART OF AN ELECTRONIC PAYMENT DEVICE THAT:
   (1)  IS  USABLE  AT A SINGLE MERCHANT OR AFFILIATED GROUP OF MERCHANTS
 THAT SHARE THE SAME NAME, MARK, OR LOGO, OR IS USABLE AT MULTIPLE, UNAF-
 FILIATED MERCHANTS OR SERVICE PROVIDERS;
   (2) IS ISSUED IN AND FOR A SPECIFIED AMOUNT OF A FIAT CURRENCY;
   (3) CAN BE RELOADED IN AND FOR ONLY FIAT CURRENCY, IF AT ALL;
   (4) IS ISSUED AND/OR RELOADED  ON  A  PREPAID  BASIS  FOR  THE  FUTURE
 PURCHASE OR DELIVERY OF GOODS AND SERVICES;
   (5) IS HONORED UPON PRESENTATION; AND
   (6) CAN BE REDEEMED IN AND FOR ONLY FIAT CURRENCY, IF AT ALL.
   (G)  "VIRTUAL CURRENCY BUSINESS ACTIVITY" MEANS THE CONDUCT OF ANY ONE
 OF THE FOLLOWING TYPES OF ACTIVITIES INVOLVING THE STATE OF NEW YORK  OR
 ANY  PERSON  THAT  RESIDES,  IS  LOCATED, HAS A PLACE OF BUSINESS, OR IS
 CONDUCTING BUSINESS IN THE STATE OF NEW YORK AND SHALL INCLUDE, BUT  NOT
 BE  LIMITED  TO:  (I)  RECEIVING  VIRTUAL  CURRENCY  FOR TRANSFER, BY OR
 THROUGH A THIRD PARTY, OF VIRTUAL CURRENCY FROM A PERSON  TO  A  PERSON,
 INCLUDING  THE  TRANSFER  FROM  THE  ACCOUNT  OR STORAGE REPOSITORY OF A
 PERSON TO THE ACCOUNT OR STORAGE  REPOSITORY  OF  A  PERSON,  OR  TRANS-
 FERRING,  BY OR THROUGH A THIRD PARTY, OF VIRTUAL CURRENCY FROM A PERSON
 TO A PERSON, INCLUDING THE TRANSFER FROM THE ACCOUNT OR STORAGE  REPOSI-
 TORY  OF  A  PERSON  TO  THE  ACCOUNT OR STORAGE REPOSITORY OF A PERSON,
 EXCEPT WHERE THE TRANSACTION IS UNDERTAKEN  FOR  NON-FINANCIAL  PURPOSES
 AND  DOES  NOT  INVOLVE  THE  TRANSFER  OF MORE THAN A NOMINAL AMOUNT OF
 VIRTUAL CURRENCY; (II)  STORING,  HOLDING,  OR  MAINTAINING  CUSTODY  OR
 CONTROL  OF VIRTUAL CURRENCY ON BEHALF OF OTHERS; (III) BUYING AND SELL-
 ING VIRTUAL CURRENCY AS A  CUSTOMER  BUSINESS;  (IV)  PERFORMING,  AS  A
 S. 8214                             3
 
 CUSTOMER  BUSINESS,  CONVERSION  OR  EXCHANGE  OF FIAT CURRENCY OR OTHER
 VALUE INTO VIRTUAL CURRENCY,  THE  CONVERSION  OR  EXCHANGE  OF  VIRTUAL
 CURRENCY  INTO  FIAT  CURRENCY  OR  OTHER  VALUE,  OR  THE CONVERSION OR
 EXCHANGE  OF  ONE  FORM OF VIRTUAL CURRENCY INTO ANOTHER FORM OF VIRTUAL
 CURRENCY; OR  (V)  CONTROLLING,  ADMINISTERING,  OR  ISSUING  A  VIRTUAL
 CURRENCY. THE DEVELOPMENT AND DISSEMINATION OF SOFTWARE IN AND OF ITSELF
 SHALL NOT CONSTITUTE VIRTUAL CURRENCY BUSINESS ACTIVITY.
   2.  UNLAWFUL  VIRTUAL  CURRENCY BUSINESS ACTIVITY. (A) NO PERSON SHALL
 ENGAGE IN ANY VIRTUAL CURRENCY BUSINESS ACTIVITY IN  THE  STATE  OF  NEW
 YORK WITH RESPECT TO A COVERED VIRTUAL CURRENCY.
   (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, NO PERSON SHALL
 ENGAGE  IN  ANY  VIRTUAL  CURRENCY BUSINESS ACTIVITY IN THE STATE OF NEW
 YORK WITH RESPECT TO A VIRTUAL CURRENCY RELATED TO A COVERED INDIVIDUAL,
 REGARDLESS IF SUCH ACTIVITY OCCURRED PRIOR  OR  DURING  COMMENCEMENT  OF
 SUCH COVERED INDIVIDUAL'S PERIOD IN OFFICE.
   3.  PENALTIES.  ANY  PERSON WHO ENGAGES IN ANY OF THE UNLAWFUL VIRTUAL
 CURRENCY BUSINESS ACTIVITIES STATED IN SUBDIVISION TWO OF  THIS  SECTION
 SHALL  BE  LIABLE  FOR  A  CIVIL  PENALTY OF NOT MORE THAN FIVE THOUSAND
 DOLLARS FOR EACH DAY IN WHICH THE VIOLATION OCCURS,  OR  FIFTY  THOUSAND
 DOLLARS  FOR  EACH DAY ON WHICH THE VIOLATION OCCURS IF THE PERSON WILL-
 FULLY OR KNOWINGLY VIOLATED SUCH SUBDIVISION. SUCH PENALTY SHALL  ACCRUE
 TO THE STATE OF NEW YORK AND MAY BE RECOVERED BY A CIVIL ACTION.
   4.  SEVERABILITY.  IF ANY PROVISION OF THIS SECTION OR THE APPLICATION
 THEREOF TO ANY PERSON OR CIRCUMSTANCE IS HELD TO BE INVALID, SUCH  INVA-
 LIDITY SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THIS SECTION
 WHICH  CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION,
 AND TO THIS END THE PROVISIONS OF THIS SECTION ARE SEVERABLE.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.