New York Assemblymember Phil Steck has introduced a bill proposing a 0.2% excise tax on all cryptocurrency transactions in the state. This legislation aims to generate approximately $158 million annually, utilizing data from Chainalysis and state GDP statistics. The funds raised are intended to tackle substance abuse issues in upstate New York, where the opioid crisis has severely affected communities. Steck's proposal seeks to capture revenue from a burgeoning crypto market, particularly following the collapse of FTX, which raised concerns about fraud in the industry. Currently, cryptocurrencies are treated as cash equivalents for tax purposes in New York, and the legislation targets various digital assets, including NFTs and stablecoins. The bill aims to help regulate and gain financial benefits from an industry that is increasingly prominent in the financial landscape.

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