New York Assemblymember Phil Steck has proposed a 0.2% excise tax on cryptocurrency transactions, which he estimates could generate $158 million annually. This revenue is intended to combat substance abuse in upstate New York, particularly in areas severely impacted by the opioid epidemic. The bill was introduced amidst increasing scrutiny of the cryptocurrency industry following scandals like the collapse of the FTX exchange. The tax would apply across various digital assets, including NFTs and those acquired through mining and staking. The estimated revenue is based on Chainalysis data and GDP statistics indicating New York's significant share of the U.S. cryptocurrency market. Steck's proposal reflects a broader trend of states attempting to regulate and benefit financially from the burgeoning cryptocurrency sector, aligning it with educational funding initiatives to confront pressing social issues.

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