BUFFALO, N.Y. -- New York state Senate Banking Committee Chair James Sanders says it's time for the state to get ahead of the curve when it comes to the emerging industries of digital currency, cryptocurrency and blockchain.

"Is it a good thing? Is it a bad thing? Is it something that New York state should push? Should we get to the head of this? Is this something that needs more regulations?" said Sanders, a Democrat from Queens.

Sanders is proposing legislation to create a task force comprised of 16 members appointed by the governor and the Legislature to study the industries, including their trade on exchanges, impacts on state and local tax receipts and energy consumption and environmental impact of digital mining.

"This is not just going to be a report to gather dust somewhere. This is going to be our roadmap to the future," he said. "How do we move on this emerging industry in New York?"

Mike Lomas, partner at the Financial Guys, said in general he is in favor of less regulation. However, when it comes to crypto, he believes there could be more oversight, especially for currency that isn't being traded on public exchanges.

"Some of these cryptocurrency doesn't have a lot of volume, not a lot of liquidity. They're also not real business models," Lomas said.

He compared the industry to the dot-com bubble of the late 1990s when many people were burned by speculative investments. Lomas believes the federal government, not the state, is best suited to regulate.

Whatever body does though, he said it should look at banks that are potentially investing in companies without significant assets.

"I don't want them investing in cryptocurrencies. I don't want them investing in things that I have to worry about so it might jeopardize me being able to go to that bank and pull out my deposits," Lomas said.

Sanders said if the Legislature had taken up a task force sooner, it may have been able to foresee issues like the collapse of Signature Bank. But he said the study is not just about oversight but also opportunities.

"If this is what's needed to make sure that New York is open for business, then we need to get ahead of it and understand it so we can move on it," he said

The report would be due in December 2025.