New York Assemblymember Phil Steck has proposed legislation introducing a 0.2% excise tax on cryptocurrency transactions, estimated to generate $158 million annually. The revenue from this tax will be allocated to combat substance abuse in upstate New York, particularly in schools, as the opioid epidemic continues to affect communities. Steck's bill, known as Bill A0966, aims to target various crypto-related activities, including transactions involving NFTs, assets obtained through mining, and stablecoins. In 2023, about 33 out of every 100,000 New Yorkers died from drug overdoses, highlighting the urgent need for such funding. The bill reflects a growing trend among states to regulate cryptocurrency and explore ways to utilize its economic potential for public good, similar to initiatives in places like Wyoming. The Department of Financial Services has not been forthcoming with transaction volume data, but Steck managed to estimate potential revenues using national transaction data and New York's GDP share. Steck also pointed out the high energy consumption associated with cryptocurrency mining as another downside of digital assets.

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