New York Assemblymember Phil Steck has introduced legislation proposing a 0.2% excise tax on cryptocurrency transactions within the state. This measure aims to generate approximately $158 million annually, based on data from crypto analytics firm Chainalysis and recent GDP statistics. The tax revenue is earmarked to combat substance abuse in upstate New York, which has been severely impacted by the opioid epidemic. The proposed tax applies broadly to various digital assets, including NFTs, mining rewards, and stablecoins. The legislation emerges amid rising scrutiny of the crypto industry following significant collapses like that of FTX. Steck noted the energy consumption linked to cryptocurrency mining as an environmental concern, further supporting the need for regulation. While current tax laws classify cryptocurrencies as cash equivalents, creating new revenue streams from a traditionally less taxed market aligns New York with other states exploring similar legislative avenues.

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