New York Assemblymember Phil Steck has proposed a bill imposing a 0.2% excise tax on cryptocurrency transactions across the state. The legislation, known as Bill A0966, is expected to generate approximately $158 million annually based on data from Chainalysis. The revenue from this tax would be allocated to substance abuse prevention and intervention programs in schools throughout upstate New York, a region heavily impacted by the opioid crisis. Steck emphasizes that the tax would target crypto investors, who are often motivated by quick profits. This initiative aligns with broader efforts seen in other states, like Wyoming, to generate funds for educational support. New York currently treats cryptocurrencies as cash equivalents for tax purposes, and existing tax regulations apply to various types of digital assets. The bill intends to encompass NFTs, mined or staked assets, and stablecoins. Additionally, Steck notes the need for careful regulation in light of the industry's vulnerabilities, highlighted by events like the collapse of the FTX exchange.

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