Critics of cryptocurrencies often point to risks such as market volatility, fraud, and regulatory uncertainty. While these fears may be well-founded, our response should not be to reject crypto altogether, but rather embrace thoughtful policies to mitigate risks, protect consumers, and promote transparency.
With proactive state-level regulation, we have the opportunity to root out bad actors while enabling responsible crypto innovation to thrive in New York.
In 2022, I stood firmly against New York’s crypto moratorium because I recognized the economic advantages these companies could bring to our entire state, and to my upstate district. Innovative, forward-thinking companies can boost local economies and create a positive feedback loop, attracting builders and entrepreneurs focused on the next generation of finance technology.
But today, New York is at risk of falling behind in attracting these types of innovators.
We have long been the global epicenter of financial innovation. From Wall Street’s bustling trading floors to the dynamic fintech startups reshaping the industry, New York has consistently led the way. However, our hesitation with cryptocurrency, highlighted by the 2022 mining moratorium, has put us at risk of ceding ground to states that recognize digital assets as vital to economic progress.
States across America are proactively integrating cryptocurrency into their economic frameworks. Arizona has led by establishing a bitcoin reserve, signaling a commitment to innovation and financial diversification. Texas, Wyoming, and North Carolina continue to attract crypto companies, innovative startups, and substantial venture capital.
These states aren’t simply riding a trend; they’re strategically positioning themselves as hubs for the next wave of financial services, creating thousands of well-paying jobs, attracting entrepreneurial talent, and generating billions of dollars in economic growth. Why shouldn’t New York, with our history of financial innovation, be the one taking advantage of these new opportunities?
The recent vote on stablecoin, crypto backed by the U.S. dollar, in the U.S. House of Representatives underscores the importance of state-level leadership. As federal policy stagnates, states have a unique opportunity to fill the void. Clear, consistent, and forward-thinking state regulations can provide much-needed clarity for companies and investors. In doing so, states like New York can demonstrate leadership again, becoming magnets for capital, founders, and innovation.
Stablecoins promise reduced costs and increased financial inclusion, offering affordable financial products for underserved communities. Tokenization of assets, another emerging innovation, has the potential to democratize investment opportunities, providing average New Yorkers access to markets previously available only to institutional investors.
New York’s potential job growth is enormous. The crypto and blockchain sectors require tech-savvy developers, compliance officers, clean energy producers, lawyers, financial analysts, and marketing professionals. Establishing New York as a crypto-friendly state would create jobs across multiple sectors and provide billions in revenue to boost local economies from Buffalo to Brooklyn.
The next step for our state is clear: embrace digital assets, support innovation, and ensure New York remains a global financial leader. The urgency cannot be overstated. States like Arizona and Wyoming are already attracting crypto companies, talent, and investments that could otherwise benefit New York. That’s why I carry a stablecoin bill in the state Senate (S.3262) to codify our regulatory guidance in law, creating the kind of system that deters bad actors while allowing good faith actors to thrive.
As a state senator, I will continue advocating for these kinds of sensible, forward-looking crypto policies. By partnering with industry leaders, regulators, and legislators, we can craft policies that protect consumers, encourage responsible innovation, utilize clean energy for production, and establish a strong foundation for growth.
Now is not the time for hesitation or resistance to change. Now is the moment for action. New York’s historic role as a global leader in finance compels us to act decisively, to embrace crypto, and to secure our state’s economic future. Our constituents expect nothing less; the rewards, including jobs, innovation, and financial resilience, will speak for themselves.
Let’s ensure New York remains at the forefront of financial innovation, proudly leading the charge into the digital age.
Cooney represents the 56th district of the state Senate, covering parts of the City of Rochester, the Town of Brighton, and the western suburbs of Monroe County.
