According to public records, the bill, submitted on July 2, sponsored by State Senator Rachel May, would require public officials in the state to disclose their crypto holdings above the $1,000 threshold on an annual basis. The proposed law aims to “close the loophole on cryptocurrency assets, like bitcoin, on the state’s financial disclosure statement and add transparency regarding individuals’ interest in this type of digital financial property.”
The proposed law would amend the state’s public officers law.
According to a summary of the legislation, the proposal aims to “close the loophole on cryptocurrency assets and create more transparency by amending the state’s public officers law. The summary states, “A new paragraph 16-a is added to subdivision 3 of section 73-a of the public officers law to require the reporting of type and market value of cryptocurrencies held by the reporting individual, over $1,000 at the close of the taxable year prior to the date of filing.
The bill also defines what cryptocurrency is.
“For purposes of the bill, “cryptocurrency” is defined as a digital currency in which encryption techniques are used to regulate the generation of units and currency and verify the transfer of funds, operating independently of a central bank,” the summary further stated. However, it is not known how many public officers in New York own cryptocurrencies. The bill’s justification text cites the IRS’s move in 2014 to treat cryptocurrencies as a form of property for tax purposes, among other items. If approved, the proposed law would officially go into effect on January 1, 2022. Cryptocurrency regulators across countries are actively working on regulating the crypto industry as it continues to gain more widespread acceptance.