Coinbase: 19% New York residents own cryptocurrency

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Coinbase has published a report discussing cryptocurrency adoption in New York, highlighting that 19 percent of New York residents are crypto holders.

Released on Tuesday, the report is the fourth part of the “United States of Crypto: New York” series, exploring the city’s adoption of digital assets and blockchain technology.

The report revealed that one in three people in New York considers crypto helpful in creating a fairer financial system, deeming the digital asset a “worthwhile investment for the future.”

The findings place New York among the top 10 states in terms of crypto ownership. The list includes California, New Jersey, Washington, Colorado, Utah, Florida, Alaska, Nevada and Massachusetts.

Coinbase’s report also revealed that 692 blockchain entities operate within New York. Notably, starting in 2020, several New York-based Fortune 100 companies have initiated ventures linked to cryptocurrencies, blockchain or Web3. These efforts have primarily concentrated on technology, financial services and retail.

Prominent crypto and blockchain companies are also making their presence known in the city, including well-known names such as Gemini, OpenSea, Coinbase, Chainalysis, Ripple, Fireblocks and Paxos.

Apart from the thriving blockchain scene in New York, the report highlights the state’s efforts to merge fashion and blockchain.

Morphew, a New York-based luxury vintage shop, is at the forefront of merging fashion and technology. Bridgette Morphew, the founder and CEO of Morphew, envisions using blockchain to create a collection of unique fashion items.

“We’re consistently pushing the boundaries of innovation. As an early crypto adopter, I saw the incredible potential of blockchain in safeguarding one-of-a-kind fashion treasures,” she said.

The Coinbase report also mentioned the company’s collaboration with hardware tech maker Arx. This collaboration led to the launch of the Genesis NFT collection.

Morphew’s Genesis NFT collection is stored on Ethereum, ensuring digital authenticity and a virtual fashion display with realistic 3D visuals. This collection premiered at the Art Basel Miami.

In June, Coinbase conducted a broader study of the crypto landscape. The study showed that roughly 80 percent of Fortune 500 companies were looking into Web3, despite regulatory challenges.

Around 90 percent of the participants believe policymakers should establish new rules and regulations to govern technology rather than relying on existing laws.

Proposed CRPTO Act

In May, New York State Attorney General Letitia James expressed intentions to introduce a bill that would mandate crypto companies to undergo audits, provide financial statements and increase measures against fraud.

The proposed CRPTO — Crypto Regulation, Protection, Transparency and Oversight — Act introduces new regulations for custody and lending. This involves closely scrutinizing companies eligible for holding assets and conducting leverage trading.

The proposed bill also orders every “digital asset influencer” to disclose any ownership interest or payment they receive for promoting a digital asset. According to the bill, a digital asset influencer promotes investment in a digital asset, even if they aren’t selling it directly.

This rule applies if the influencer is paid with digital assets valued at least $25,000. It also applies if the influencer owns or plans to own such assets.

New York also introduced BitLicense in 2015, causing some companies to stop working there. States like Illinois and New Jersey have conveyed interest in similar regulations.