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New York Takes Its First Step towards a State-Issued Cryptocurrency

Assembly Bill #A9685 concerns the regulation of a state-issued cryptocurrency

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NY State Senate Assembly Bill #A9685

A recent bill, the Assembly Bill A9685, submitted to the New York State Senate by lawmaker Clyde Vanel, calls for establishing a task force to study the impact of a state-issued cryptocurrency on the state of New York. Submitted on February 2nd, the bill is currently in assembly committee, awaiting an on-floor calendar and, subsequently, Pass verdicts from the Senate and the Assembly. To become an Act, the bill needs to be signed / vetoed by the Governor, which is currently 4 steps away. However, this could certainly be seen as a first step towards the state of New York issuing its own cryptocurrency.

Call for Action

The bill has been referred to the Committee on Governmental Operations, and calls for a task force to study:

  • The necessary steps the state of New York must take to produce and release a  state-issued  cryptocurrency, and  how this will affect the United States SEC’s (Securities and Exchange Commission) and the CFTC’s (Commodities Futures Trading Commission) jurisdiction over economic transactions
  • The implications of issuing such cryptocurrency on monetary policy and financial stability
  • How local, state and federal taxation would be affected by this
  • The measures other jurisdictions, central banks,  international governing bodies, states, or countries have taken to potentially issue cryptocurrency.

“Cryptocurrency,” for the purpose of the bill, has been defined as a digital currency in which encryption techniques are used to regulate the generation of units and currency and verify the transfer of funds, operating independently from a central bank.

New York Legislature

New York’s legislature also seems open to exploring and discussing the possibilities and regulations of cryptocurrency in the state. Senator David Carlucci and Senator Jesse Hamilton have organized a hearing on February 23rd, to gain insight into the logistics and organization of cryptocurrency; its regulation through the BitLicense in the state of New York, other states and on a federal level; and the current marketplace in which it thrives and has become problematic for consumers.

Image Credit: Deposit Photos

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