New York Senator Proposes Crypto Task Force to Assess Industry’s Impact

A New York state senator has put forward a bill aimed at forming a specialized task force to analyze the impact of cryptocurrency adoption and blockchain technology in the state. The legislation, known as the New York State Cryptocurrency and Blockchain Study Act, was introduced by Senator James Sanders Jr. on Feb. 12 and seeks to provide a comprehensive assessment of the state’s evolving crypto landscape.

If enacted, the bill would establish a 17-member task force responsible for evaluating various aspects of cryptocurrency, including trading activity, tax implications, and the number of exchanges operating in New York. The task force will also examine how New York’s regulatory framework compares to other jurisdictions and investigate the environmental impact of digital assets.

The legislation mandates that members be appointed within 90 days of the bill’s approval, with the final report due before Dec. 15, 2027. The report would outline recommendations for improving transparency, security, and consumer protection, while also addressing long-term implications of digital currency use in the state.

Regulatory Challenges in New York

While New York is considered a key hub for the cryptocurrency industry, its BitLicense program, introduced in 2015, has been met with strong criticism. The program requires crypto businesses operating in the state to obtain a license from the New York Department of Financial Services (NYDFS)—a process often seen as restrictive due to its high fees and extensive regulatory requirements.

Proponents of deregulation, including New York City Mayor Eric Adams, have argued that the BitLicense framework stifles innovation and discourages crypto firms from establishing a presence in the state. The proposed task force is expected to evaluate these concerns and determine whether adjustments to the program are necessary to foster growth while maintaining consumer protections.

Growing State-Level Interest in Crypto

New York’s proposed study aligns with a broader trend across the United States, where an increasing number of states are exploring crypto-related legislation. More than 20 states are currently considering various bills related to digital asset investments and regulatory oversight.

Meanwhile, Arizona and Utah have already advanced legislation beyond the House committee level , suggesting that state-level crypto regulation is becoming a priority nationwide.