Key Takeaways
- NY Senator proposes a 17-member task force to study Bitcoin.
- New York's strict BitLicense regulations have driven firms away.
- Two previous attempts to establish a Bitcoin task force failed.
New York State Sen. James Sanders Jr. (D-N.Y.) has proposed a bill aimed at forming a Bitcoin-focused task force as the state reassesses its digital asset policies.
The legislation, currently under Senate committee review, would require experts to submit findings on Bitcoin’s tax implications, environmental effects, and market transparency by late 2027.
Task force structure
The proposed task force would consist of representatives from the Department of Financial Services, environmental groups, and economic academics.
While members would not be compensated, they would receive reimbursements for expenses.
Appointments would be made within 90 days of the bill’s passage, with the findings expected to influence future state regulations.
Current regulatory environment
New York maintains some of the strictest Bitcoin regulations in the country due to its 2015 BitLicense framework, which mandates that businesses obtain special licensing to operate.
This has led some Bitcoin firms to avoid the state entirely.
Sanders emphasized New York’s competition with global financial hubs like London and Hong Kong, arguing that the state must adapt to remain a leader in financial innovation.
Previous attempts
This marks New York’s third attempt to form a Bitcoin-focused task force.
A similar initiative was signed into law in 2019 but was never convened, and a 2023 bill was vetoed by Governor Kathy Hochul.
Jason Brett, founder of the Value Technology Foundation, questioned whether this latest effort would succeed, citing previous failures and budget concerns totaling $35 million.
