The State of New York is set to form a cryptocurrency task force to consider the “potential effects of the widespread implementation of digital currencies on financial markets in the state.”

Currently, the establishment of the crypto task force consists of a proposed bill that is being supported by the New York State Legislature’s banking committee. Once passed by the legislature — a near-certainty because both the banking committee and the legislature are controlled by Democrats — the task force would consist of nine members. The task force would be required to submit a report to the governor, temporary president of the Senate, and the speaker of the assembly by December of 2019.

In a similar fashion to a task force established in the U.K. in March, the New York version will consider both the positive and negative aspects of cryptocurrency use.

Specifically, the taskforce will consider the following (via CCN):

1. How many cryptocurrencies are currently traded and what is their percentage of market share?
2. How many crypto exchanges are operating in New York state and what’s their average monthly trading volume?
3. What’s the impact of digital currency use on state and local tax receipts?
4. Who are the large investors in digital currencies?
5. How much energy is required to mine crypto?
6. How transparent is the crypto marketplace and what’s the potential for price manipulation?
7. What crypto laws are currently in place by other states, the federal government, and foreign countries?
8. How can we enhance market transparency and boost consumer protection?
9. How does New York plan to address the long-term impact of cryptocurrencies?

Unlike some jurisdictions that have either banned or restricted the use of cryptocurrencies, New York, like its politics, has been progressive on the use of cryptocurrencies in the past. New York was one of the first jurisdictions to legalize and regulate cryptocurrency exchanges when it introduced the Bitlicense back in 2015, though it was not initially favored by some in the industry.

Photo: Matt H. Wade/Wikimedia Commons