A New York state senator has introduced a bill to create a dedicated task force to scrutinize the impact of cryptocurrencies, digital assets, and blockchain technology on the state’s economy, regulations, and tax revenue.

The New York State Cryptocurrency and Blockchain Study Act, proposed by Senator James Sanders Jr. on Feb. 12, aims to form a 17-member task force to assess how digital currencies are used in the state, the number of exchanges operating, and the broader financial and regulatory implications. Additionally, the task force will examine crypto’s environmental footprint and compare New York’s regulatory framework to other jurisdictions.

If the bill is passed, the task force must be established within 90 days, with findings and recommendations submitted to the governor and legislature by Dec. 15, 2027. The final report would include proposals to enhance transparency, security, and consumer protection while addressing long-term regulatory concerns.

The bill remains in committee review and must pass floor debates and votes in both the assembly and senate before reaching the governor’s desk. While New York is a major hub for the crypto industry, its 2015 BitLicense framework has been heavily criticized for being overly restrictive. Pro-crypto officials, including New York City Mayor Eric Adams, have argued that stringent compliance requirements, high licensing fees, and strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations have stifled innovation.

New York’s move comes amid a wave of legislative efforts across the U.S., with over 20 states considering crypto-related bills. Arizona and Utah have already advanced their legislation past the House committee stage. Analysts at VanEck estimate that widespread adoption of these laws could generate $23 billion in Bitcoin demand. Meanwhile, more than 100 public and private entities have begun accumulating Bitcoin, viewing it as a hedge against inflation.