New York Forms Blockchain Study Task Force, Hints at BitLicense Update

New York State is officially launching a cryptocurrency task force aimed at helping the state understand cryptocurrencies and their underlying blockchain technology.

Governor Andrew Cuomo signed a bill last month creating the task force to study cryptocurrencies, other forms of digital currency and blockchain technology, according to a press release issued Wednesday by the bill's sponsor, Assemblyman Clyde Vanel.

The task force will be composed of technologists, consumers, institutional and retail investors, representatives of enterprises and academics; the members will be appointed by Cuomo, as well as the state Senate and Assembly.

These reports will include proposals on how the state may best regulate, define or utilize cryptocurrencies, as well as sweeping overviews of the space, including the energy cost of mining cryptocurrencies, how cryptocurrencies are being traded within the state, how these trades may be affecting tax collection and a number of other aspects.

New York has already developed its own landmark regulation around cryptocurrency businesses in the form of its controversial BitLicense.

"The task force of experts will help us strike the balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers."

Vanel first proposed the task force in late 2017, introducing the bill in December of that year alongside a number of other measures aimed at increasing the state government's understanding of the technology and its possible uses.

Fellow Assemblyman Ed Ra noted in a statement that the state would have to balance consumer protection with encouraging investment and innovation.

The U.S. House of Representatives passed a bill last year proposing a similar task force to analyze cryptocurrencies, albeit with a focus on financial crimes.

On a state level, California is likewise forming a blockchain working group tasked with studying how the state might utilize blockchain technology.