The banks committee sect of the New York state legislature has voted in favor of progressing a bill that would authorize a digital currency task force.
The vote took place on May 30, with the committee confirming their backing for a task force that would study the effects of the implementation of cryptocurrencies on the state’s financial markets.
The Task Force
The banking committee is not the final hurdle for the bill, however, as it still must meet approval by the remaining legislators. Should this be successfully passed, the bill would commission a report that studies the impact of regulations on both the cryptocurrency and blockchain industries.
Specifically, the study would investigate how such regulations would affect the development of these industries, how the use of cryptocurrencies might affect local tax receipts, and what is needed to increase the transparency of the digital currency marketplace.
The inquiry would be required to provide the accurate number of cryptocurrency exchanges operating in New York state, as well as details of both large digital currency investors and energy consumption of mining operations. As reported by Coin Telegraph, the information gathered may be collected from any organization, government entity or person.
Notably, the bill states a requirement to review “laws and regulations on digital currency used by other states, the federal government, foreign countries, and foreign political and economic unions to regulate the marketplace.”
The task force would be formed of nine members that would operate under the jurisdiction of the state governor, temporary president of the Senate, and the speaker of the assembly, with the final report expected for publication in December 2019.
US crypto crackdown
In an ongoing process of a US crackdown on cryptocurrency operations, last week the US Department of Justice (DOJ) opened a criminal investigation into whether traders are manipulating the price of Bitcoin and other cryptocurrencies.
Earlier this year, the North American Securities Administrators Association issued a warning for investors about the potential risks carried without cryptocurrency and initial coin offering (ICO) investments.
It is important to note, however, that less than 1 percent of bitcoin transactions are associated with illicit activities. If the report is produced by the New York task force, this could be an important opportunity to dispell unreasonably negative perceptions of the cryptocurrency industry.
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