News out today highlights that officials in New York are stepping up their cryptocurrency research efforts in a move that sounds a little similar to what we are seeing in the UK, but on a more localised level. Recently, officials in New York have issued rulings against a number of cryptocurrency exchanges that have required the exchanges to disclose information about their dealings, however, this latest move suggests that the authorities in New York, wish to expand their understanding of cryptocurrencies and blockchain technology.
The cryptocurrency task force will be established in order to research the impact of cryptocurrencies on the states own finances. The aim of the taskforce is to find conclusive information that will help inform governors on how best to develop new legislation that will either help to abolish or promote cryptocurrencies within New York. As it stands, we can’t be too sure exactly which stance the authorities in New York are going to take.
According to RTT News:
“The banks committee of the New York state legislature voted last week to progress a bill to create the task force. Once passed, the bill would establish the task force, which would consist nine members. They are required to submit a report to the governor, temporary president of the senate, and the speaker of the assembly by December of 2019.”
“The task force will conduct a study on the number of digital currencies and exchanges operating in New York state and their average monthly trade volume, as well as the digital currencies’ impact on state and local tax receipts, among others. The task force’s work will also include a review of 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.”
You can see the full report by RTT News for yourself, here- http://www.rttnews.com/story.aspx?Id=2901172
What does this mean for the markets?
Well, we expect the markets to react according to the decisions made in light of the taskforce’s findings. In short, nothing major will happen just yet, not until 2019 when the taskforce is required to submit a full report. What we can expect however in the meantime, is some smaller reactions to occur within the markets, in response to any comments made by the taskforce.
This is a really big deal and marks a potential horizon for cryptocurrencies not just in New York but in the whole of the United States. It is likely that other states will follow this approach and should the taskforce’s findings go against what the authorities want to hear, we could very well expect to see restrictions on trading in New York develop at a rapid pace.
For now, let’s remain optimistic and hope that this taskforce takes a similar stance to other, similar investigative movements such as what we are seeing in the UK.