New York Assemblymember Phil Steck proposed legislation to implement a 0.2% excise tax on cryptocurrency transactions, estimating it would generate $158 million annually. The revenue would be allocated to combat substance abuse in upstate New York, which has been severely affected by the opioid crisis. Steck's proposal is based on preliminary data from Chainalysis, which indicated a substantial volume of crypto transactions in the U.S. during the past year. New York City, as a major financial hub, has seen significant crypto activity. The bill also highlights concerns over fraud and scams within the cryptocurrency sector, referencing the collapse of exchanges like FTX. The legislation covers various digital assets, including NFTs and stablecoins, and seeks to regulate these sectors under the New York Department of Financial Services. This tax initiative comes as states explore ways to leverage cryptocurrency revenues for educational funding and other needs.

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