New York State may possibly launch a cryptocurrency task force that could eventually strengthen the more general use of cryptocurrencies.
In another move that points to the fact that bitcoin is not going anywhere, the New York State Assembly suggested launching a cryptocurrency task force to study the growing cryptocurrency and blockchain industries in the state.
If successful, the nine-person task force will offer a comprehensive report of their research by December 2019.
The suggestion of creating a task force recommends that regulators expect cryptocurrencies to be a relevant part of the financial markets in years to comes, regardless of the opposing of skeptics who suggest the industry will soon collapse.
The task force will have the responsibility of determining the following:
How many cryptocurrencies are currently traded and what is their percentage of market share?
How many crypto exchanges are operating in New York State and what’s their average monthly trading volume?
What’s the impact of digital currency use on state and local tax receipts?
Who are the large investors in digital currencies?
How much energy is required to mine crypto?
How transparent is the crypto marketplace and what’s the potential for price manipulation?
What are crypto laws currently in place by other states, the federal government, and foreign countries?
How can we enhance market transparency and boost consumer protection?
How does New York plan to address the long-term impact of cryptocurrencies?
New York is one of the few U.S. states that is taking the responsibility of understanding and tracking the industry as it continues to grow rapidly.
The New York State Attorney General’s Office in April 2018 launched an inquiry into cryptocurrency exchanges by sending questionnaires to 13 major exchanges, including Coinbase, Gemini, and Binance.
According to the NY Attorney General’s Office, the inquiry was opened in the midst of growing public interest in bitcoin and the high-profile scams that have shaken the industry. The Winklevoss twins, Cameron and Tyler, were in support of the move, stating improved transparency and practical regulation is necessary for the market.
“These technologies can’t flourish and grow without thoughtful regulation that connects them to finance,” said Tyler Winklevoss, CEO of Gemini Exchange. “As long as jurisdictions strike the right balance, we think it’s going to be a huge boon and win for cryptocurrencies.”