New York Assemblymember Phil Steck proposed new legislation aiming to charge a 0.2% excise tax on cryptocurrency transactions, which he estimates could generate $158 million annually. The revenue is intended to fund substance abuse prevention programs in upstate New York, where the opioid crisis has had a severe impact. The bill, referred to as A0966, is designed to supplement existing education initiatives focusing on addiction, particularly in the wake of increasing overdose rates. The tax would encompass various crypto activities, including NFTs and digital assets acquired through mining. Notably, this push aligns with ongoing crypto regulatory discussions at the state level, and comes as other states explore similar tax strategies. Steck's method for estimating potential revenue involved analyzing data from crypto analytics firm Chainalysis and adjusting for New York's share of national GDP. This legislative move surfaces amid heightened regulatory scrutiny of the digital asset industry, particularly following significant collapses within the market in recent years.

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