New York Assemblymember Phil Steck has proposed a new bill that would impose a 0.2% excise tax on cryptocurrency transactions, estimating this measure could generate $158 million annually. The revenue is intended to support programs combating substance abuse in upstate New York, particularly in light of the ongoing opioid crisis. The bill comes amid growing scrutiny on the digital assets industry, especially following notable incidents of fraud like the FTX collapse. Current tax regulations classify cryptocurrencies as cash equivalents in New York, with this new tax expanding upon existing capital gains and other taxes applicable to digital assets. Steck based his revenue estimates on data from Chainalysis, which highlighted significant crypto transaction volumes, asserting that despite regulatory challenges, the burgeoning cryptocurrency market in New York City could lead to substantial state revenues.

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