New York Cryptocurrency Updated Laws
Regulation of New York Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
PROPOSED LAWS & REGULATIONS
Since the “BitLicence” regulation enactment in 2015, the regulatory scheme has been the subject of much criticism and has resulted in an exodus of businesses fleeing the state because of the costs and regulatory hurdles associated with the “BitLicense”
Responding to the critics, on June 2020 on June 24, 2020, the New York State Department of Financial Services (“NYDFS”) proposed a conditional licensing framework for virtual currency business entities so that these entities can participate in the coin listing process for licensed exchanges while their “BitLicense” is being evaluated.
The regulator plans to release new guidance and documentation to assist applicants, letting applicants receive conditional licenses if they partner with already-licensed entities to conduct licensed exchanges.
NYDFS also announced NYDFS signed a Memorandum of Understanding (“MoU”) with the State University of New York, allowing cryptostartups to visit any of the university’s 64 campuses to seek assistance in writing their application or starting their business.
https://www.dfs.ny.gov/apps_and_licensing/virtual_currency_businesses/gn/notice_vc_busact_lic_app_procedure
A.B. 1351/S.B. 6036, if adopted, will direct the study of the use of blockchain technology to protect voter records and election results.
Status: Referred to Election Law Committee
A.B. 1351, 242nd Leg. (N.Y. 2019).
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A01351&term=2019&Summary=Y&Actions=Y
A.B. 1500
A bill was introduced in January 2019, which would allow “New York state agencies to accept cryptocurrencies as a form of payment.”
Status: Referred to Governmental Operations Committee
A.B. 1500, 242th Leg., 2019 Reg. Sess. (N.Y. 2019).
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A01500&term=2019&Summary=Y&Actions=Y
A.B. 8314/S.B.7149
Introduced in June 2019, it would recognize electronic contact by an owner as written contact and include unclaimed virtual currency within the definition of abandoned property.
Status: Reported referred to ways and means
A.B. 8314, 242nd Leg. (N.Y. 2019).
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A08314&term=2019&Summary=Y&Actions=Y
S.B. 4562
In January 2019, another bill regarding the task force was introduced. The bill would require the task force to study the following:
(1) the steps New York “must take to produce and release a state-issued cryptocurrency and how such will affect” the SEC and CFTC’s jurisdiction over economic transactions;
(2) “the implications of issuing such cryptocurrency on monetary policy and financial stability;
(3) how local, state, and federal taxation would be affected by such; and “the measures other jurisdictions, central banks, international governing bodies, states, or countries, have taken to potentially issue cryptocurrency.
Status: Referred to the Health Committee
S.B. 4562, 242nd Leg., Reg. Sess. (N.Y. 2019).
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A04562&term=2019&Summary=Y&Actions=Y
A.B. 2213
Relevant to the financial market, another bill was introduced to establish a financial technology regulatory sandbox program to test financial technology products, including “cryptocurrency business activity.”
Status: Referred to the Bank Committee
A.B. 2213, 242nd Leg., Reg. Sess. (N.Y. 2019).
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A02213&term=2019&Summary=Y&Actions=Y
S.B. 4142
“Allowing signatures, records, and contracts secured through blockchain technology to be considered in an electronic form and to be an electronic record and signature” and “allowing smart contracts to exist in commerce.”
Status: Referred to the Governmental Operations Committee
S.B. 4142, 242nd Leg. (N.Y. 2019).
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https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A04142&term=2019&Summary=Y&Actions=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y&Text=Y
A.B. 2239
The creation of an “office of financial resilience” of which one responsibility would be “to advocate on behalf of blockchain startups and companies focused on building and supporting local economies.”
Status: Referred to the Bank Committee
A.B. 2239, 242nd Leg., Reg. Sess. (N.Y. 2019).
https://nyassembly.gov/leg/?term=2019&bn=A02239
A.B. 1371
The establishment of a task force “to study and report on the potential implementation of blockchain technology in state record keeping, information storage, and service delivery.”
Status: Referred to the Governmental Operations Committee
A.B. 1371, 242nd Leg., Reg. Sess. (N.Y. 2019).
A.B. 1502
The creation of a task force “to study the potential designation of economic empowerment zones for the mining of cryptocurrencies in the state of New York.”
Status: Referred to the Economic Development Committee
A.B. 1502, 242nd Leg., Reg. Sess. (N.Y. 2019).
A.B. 3099/S.B. 5643
Establishes the office of financial resilience to develop and implement new programs and initiatives to support local economies and promote resilient financial models.
Status: Referred to the Bank Committee
https://www.assembly.state.ny.us/leg/?bn=A03099&term=2021
A.B. 3336
Relates to financial technology products and services; establishes a regulatory sandbox program.
Status: Referred to the Bank Committee
https://www.assembly.state.ny.us/leg/?default_fld=&leg_video=&bn=A03336&term=2021&Summary=Y&Actions=Y
A.B. 3747
In 2021, a bill was introduced to establish a task force to study the potential designation of economic empowerment zones for the mining of cryptocurrencies in the state of New York.
Status: Referred to the Economic Development Committee
https://nyassembly.gov/leg/?bn=A03747&term=2021
B.A. 3906
A bill was introduced in January 2021, which would allow “New York state agencies to accept cryptocurrencies as a form of payment.”
Status: Referred to Governmental Operations Committee
https://www.assembly.state.ny.us/leg/?default_fld=&leg_video=&bn=A03906&term=&Summary=Y&Actions=Y&Text=Y
B.A. 4195/ S.B. 3862
A bill was introduced in January 2021, which would establish a task force to study and report on the potential implementation of blockchain technology in state record keeping, information storage, and service delivery.
Status: Referred to Internet and Technology Committee
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=S04195&term=2021&Summary=Y&Text=Y
ENACTED LAWS & REGULATIONS
23 NYCRR Part 200
In June 2015, The New York State Department of Financial Services DFS issued virtual currency regulation, 23 NYCRR Part 200 under the New York Financial Services Law.
The “BitLicense” legislation requires operations related to transactions involving any form of virtual currency to obtain a license from the state.
23 NYCRR Part 200
https://govt.westlaw.com/nycrr/Document/I85908c9e253711e598dbff5462aa3db3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
A.B. 8783/S.B. 9013 – The “Digital Currency Task Force” bill was adopted in 2018, creating a digital currency task force to determine the impact of cryptocurrencies on New York financial markets.
A.B. 8783, 240th Leg., Reg. Sess. (N.Y. 2018).
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A08783&term=2017&Summary=Y&Actions=Y
A.B. 1194/S.B. 1845-A
In January 2019, the Senate introduced a bill that would increase the number of members of the task force from 9 to 13.
S.B. 1194, 242nd Leg., Reg. Sess. (N.Y. 2019).
https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=S01194&term=2019&Summary=Y&Actions=Y&Committee%26nbspVotes=Y&Memo=Y&Text=Y
A.B. 7389/S.B. 6486
Establishes a moratorium on consolidated operations that use proof-of-work authentication methods to validate blockchain transactions; provides that such operations shall be subject to a full generic environmental impact statement review.
https://www.assembly.state.ny.us/leg/?term=2021&bn=S06486
New York Cryptocurrency and Blockchain Attorneys
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