New York Lawmaker Proposes Study of State-Backed Cryptocurrency

A New York lawmaker has proposed researching the creation of a state-backed cryptocurrency.

AccessTimeIconFeb 5, 2018 at 7:01 a.m. UTC
Updated Sep 13, 2021 at 7:31 a.m. UTC

A New York lawmaker who previously filed several bills related to blockchain has submitted new legislation that calls for studying the creation of a state-backed cryptocurrency.

The measure, dated Feb. 2, calls for the creation of a task force dedicated to studying "the impact of a state-issued cryptocurrency on the state of New York."

Among the main areas of inquiry would be the regulatory implications of the undertaking, pointing to the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission in particular. The task force, if approved, would also study "the implications of issuing such cryptocurrency on monetary policy and financial stability... [and] how local, state, and federal taxation would be affected by such."

The bill was submitted by lawmaker Clyde Vanel, who in late November submitted four bills related to cryptocurrencies and blockchain. Among those, as reported at the time, was one measure that called for state elections officials to investigate uses of the technology for the purposes of state and local ballots.

Public records indicate that New York's legislature is also poised to discuss the topic of cryptocurrencies – as well as the state's BitLicense regulatory framework – at a hearing later this month.

Senators David Carlucci and Jesse Hamilton, according to a notice, are set to hold a public meeting on Feb. 23 with topics including "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 becomes problematic for consumers."

It's not clear at press time who will be appearing before the committee.

Image Credit: Felix Lipov / Shutterstock.com

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