New York Assemblymember Phil Steck proposed a 0.2% excise tax on cryptocurrency transactions with an estimated annual revenue of $158 million. The funds are intended to support substance abuse prevention and intervention programs in upstate New York, where the opioid epidemic is a significant issue. Steck's bill, A0966, would tax various crypto transactions, including NFTs and stablecoins. Based on data from the crypto analytics firm Chainalysis, Steck's calculations suggest that New York could see a substantial revenue influx from crypto investors seeking quick wealth. As cryptocurrencies are treated similarly to cash for tax purposes, this initiative aligns with ongoing discussions about regulations in other states, including Wyoming. Steck, who chairs the committee overseeing addiction services, highlights the potential societal benefits of redirecting tax revenues to combat drug abuse. This proposal is part of a broader context where New York faces scrutiny over its regulatory stance amid the collapsing of crypto firms like FTX.

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