New York Assemblymember Phil Steck has proposed a bill to implement a 0.2% excise tax on cryptocurrency transactions in the state. The legislation, Bill A0966, aims to generate an estimated $158 million annually, using proceeds to combat substance abuse in upstate New York amid rising drug overdose rates. Steck based his revenue projections on Chainalysis data and recent GDP statistics, indicating a significant flow of cryptocurrency in the state, particularly given New York City's prominence in the financial sector. Steck argues that the tax will target crypto investors primarily motivated by quick wealth. The legislation includes broad tax implications for NFTs, digital assets obtained through mining, and stablecoins. This measure follows scrutiny of the crypto industry due to fraud cases and the environmental impact of crypto mining. In addition to Steck's proposal, other states like Wyoming are exploring similar initiatives to fund educational efforts with crypto revenues. The bill reflects a growing recognition of the need for regulatory frameworks within the rapidly evolving cryptocurrency landscape.

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