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 proposed tax aims to assist schools in combating substance abuse issues in upstate New York, which have been severely affected by the opioid epidemic. Steck based his calculations on data indicating a revenue of roughly $79 billion in crypto transactions for New York, adjusting for its share of U.S. GDP. The bill's scope includes NFTs, digital assets obtained through mining and staking, as well as stablecoins, reflecting the increasing recognition of the crypto industry's financial impact. Current regulations classify cryptocurrencies as cash equivalents for tax purposes, and recent data from the New York Department of Financial Services indicates a significant volume of transactions, although the precise dollar amount remains unreported. The initiative is part of broader legislative efforts to address both the economic opportunities and challenges posed by the crypto sector, particularly in light of past industry failures that raised questions about fraud and regulation.

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