From decrypt by Vince Dioquino

New York state Sen. James Sanders Jr. (D-N.Y.) introduced a bill Wednesday that seeks to establish a crypto task force, as the state reassesses its regulatory stance amid federal policy shifts affecting the industry.

The bill, now under review by a Senate committee, would require experts to deliver their findings on crypto’s impact on state revenue and the environment toward the end of 2027.

The proposed 17-member panel would investigate crypto's effects on state tax revenue, environmental impact, and market transparency, according to the bill’s text.

The task force would include representatives from the Department of Financial Services, environmental conservation groups, and academic experts in economics. Members would serve without compensation but receive expense reimbursements.

Members would be appointed within 90 days of the bill's effective date, with findings expected to inform future crypto policy in a city that Sanders characterizes as "arguably the financial capital of the world."

The task force would examine New York's position among 20 other U.S. states that continue to consider crypto investment legislation. Those efforts could drive $23 billion in Bitcoin demand, according to VanEck’s head of digital assets research Matthew Sigel.

New York enforces some of the toughest crypto regulations in the U.S., largely due to its BitLicense framework, implemented in 2015.

The state's Department of Financial Services (NYDFS) regulates crypto businesses, requiring them to secure a BitLicense or a limited-purpose trust charter to operate.

Those requirements have made New York a difficult market for many crypto firms, prompting some to bypass the state entirely.

New York is "competing with London, Tokyo, Shanghai, and Hong Kong for financial investments" and its "position as a fiscal leader," Sanders said in a statement.

Missed opportunities

Sanders also cites blockchain technology's "impact on innovation, jobs, economic growth, energy consumption, and environmental issues" as a reason to study it, adding that it should "supplement the BitLicense with the correct legislative framework."