New York Assemblymember Phil Steck has proposed legislation to impose a 0.2% excise tax on cryptocurrency transactions, which he estimates could generate $158 million annually. The revenue from this tax would be allocated to combat substance abuse in upstate New York, where the opioid epidemic has had severe impacts on communities. The bill aims to utilize data from Chainalysis, revealing that from July 2022 to June 2023, approximately $1 trillion worth of cryptocurrency was sent to the U.S. Steck adjusted this figure based on New York's GDP to derive an estimated $79 billion in transactions originating from the state. The legislation is part of a larger trend, as other states explore crypto-related initiatives to support educational funding as well. Steck expresses concern about the environmental effects of cryptocurrency mining and the vulnerabilities of the digital assets industry to fraud, especially following notable scandals like the FTX collapse.

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