New York Assemblymember Phil Steck has proposed a new 0.2% excise tax on cryptocurrency transactions, which he estimates could generate $158 million annually. This revenue would primarily fund substance abuse prevention programs in schools across upstate New York, targeting areas severely affected by the opioid crisis. The bill aims to impose the tax immediately and extends to various digital assets, including cryptocurrencies and NFTs. Steck's estimates are based on Chainalysis data from 2022 to 2023 and the state's share of national GDP. Currently, cryptocurrencies in New York are treated as cash equivalents for tax purposes, making them subject to capital gains and other taxes. The proposed tax legislation reflects a growing trend of states considering taxation of digital assets, with some, like Wyoming, already exploring other crypto-related initiatives for educational funding. The bill's success may hinge on New York’s historical scrutiny of the cryptocurrency sector, particularly following incidents of fraud within the industry.

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