New York Assemblymember Phil Steck has proposed legislation imposing a 0.2% excise tax on cryptocurrency transactions. According to Steck, this tax could generate approximately $158 million annually, derived from data collected by Chainalysis from 2022 to 2023 and recent GDP statistics. The tax revenue is intended to support substance abuse prevention and intervention programs in upstate New York, where the opioid crisis has severely affected communities. The bill, known as A0966, will encompass a wide range of digital assets, including NFTs and stablecoins. Steck noted that despite increased regulatory scrutiny, there are vulnerabilities within the crypto market that necessitate oversight. Previous years have seen New York treating cryptocurrencies similarly to cash for tax purposes, subjecting them to capital gains, gift, and estate taxes. With New York City as a hub for financial and crypto activities, the potential transaction volume could be significant, underscoring the importance of this legislative measure in aiding public health initiatives.

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