New York Assemblymember Phil Steck has proposed a 0.2% tax on cryptocurrency transactions to generate an estimated $158 million annually. This proposal aims to combat substance abuse in upstate New York, where the opioid epidemic has markedly impacted communities. The legislation follows an analysis of cryptocurrency transaction data by Chainalysis, which estimated approximately $1 trillion in crypto transactions to the U.S. from July 2022 to June 2023. As New York has one of the highest rates of drug-related deaths, Steck's bill is designed to provide much-needed funding for initiatives addressing this crisis. Although New York currently subjects cryptocurrencies to capital gains tax, the new excise tax would expand the financial obligations of crypto investors. Additionally, the bill includes NFTs, mined digital assets, and stablecoins. Steck highlights the environmental concerns linked to crypto mining as a contributing factor to this legislation. The proposal has emerged amid heightened regulatory scrutiny following the collapse of crypto entities like FTX, underscoring the risk of fraud within the industry.

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