New York’s ambition is to become a leader in the blockchain market witnessed by their effort to create a cryptocurrency task force. The 9-person group will be in charge of investigating several aspects of the cryptocurrency industry, and writing up a report that would help establish a better regulatory framework.
If the proposal is approved, the task force will have to provide the New York State Assembly with answers to several questions by December 2019. Therefore, the task force will report on:
- What impact current regulation has had on the development of digital currencies and the blockchain market, in the state;
- The regulatory recommendations for the New York government are meant to improve the state of cryptocurrencies. This includes consumer protection, an increase of transparency, improved security, and ensure a positive long-term impact of cryptocurrencies.
- How many cryptocurrencies exist on the market, and what their afferent market share is;
- How many exchanges are operating in NY alongside the average monthly trading volume;
- Who the most prominent cryptocurrency investors are, and popular investment methods;
- How transparent digital currencies are, and whether there is potential for price manipulation alongside other illegal activities;
- How much energy do coin mining operations require;
- The legislative approach that other states and countries are implementing for efficient crypto regulation;
- The impact of crypto-based payments on state and local tax receipts;
What are the effects of enacting this cryptocurrency task force?
As the official cryptocurrency task force report will be submitted by December 2019, it is currently impossible to determine whether it will be favorable towards the market, or biased by future trends in the industry. Despite this, the state of New York is well-known for its innovative approach towards the blockchain and cryptocurrency industries.
Digital currency exchanges operating in the region are happy with the current regulatory efforts. In fact, the Winklevoss twins, who are the founders of the Gemini exchange, believe that: “As long as jurisdictions strike the right balance, we think it’s going to be a huge boon and win for cryptocurrencies.”