New York Assemblymember Phil Steck recently proposed a 0.2% excise tax on cryptocurrency transactions in the state, estimating it could generate $158 million annually. This revenue is intended to combat substance abuse issues in upstate New York, where communities have been severely affected by the opioid crisis. The legislation follows a troubling trend of rising opioid-related deaths in the state. The proposed tax would apply to a range of crypto transactions, including those involving NFTs and digital assets obtained through mining and staking. Despite the challenges in collecting accurate transaction data from the state's financial regulators, Steck utilized findings from Chainalysis to project the potential revenue, tying New York’s estimated share of U.S. cryptocurrency activity to broader economic metrics. This move comes amid a backdrop of scrutiny and regulatory efforts regarding the crypto industry, especially following the collapse of major exchanges like FTX and ongoing investigations into firms like Gemini.

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