New York Assemblymember Phil Steck has introduced legislation proposing a 0.2% excise tax on cryptocurrency transactions, which he estimates could generate $158 million annually. The revenue is intended to combat substance abuse in upstate New York as the region faces a significant opioid crisis. Steck's bill notes that many crypto investors are motivated by a desire for quick wealth, which could help fund programs for substance abuse prevention in schools. The bill encompasses various digital assets, including NFTs and stablecoins, and is intended to address concerns surrounding the crypto industry, particularly after incidents of fraud highlighted by the collapse of platforms like FTX. The New York Department of Financial Services has previously classified cryptocurrencies as cash equivalents for tax purposes, aligning with practices in several other states. Steck's memo also emphasizes the environmental impacts of crypto mining as a downside of the industry, indicating a broader push towards regulation and responsible governance within the cryptocurrency sector.

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