New York Assemblymember Phil Steck has proposed a 0.2% excise tax on cryptocurrency transactions, estimating it could generate $158 million annually. The revenue from this tax aims to aid schools in combating substance abuse in upstate New York, where the opioid crisis has had a significant impact. Steck based his revenue projections on Chainalysis data and GDP statistics, considering the substantial volume of crypto transactions in the state. Cryptocurrencies are currently treated as cash equivalents for tax purposes in New York. Steck's memo cites the environmental consequences of cryptocurrency mining and highlights the scrutiny the industry has faced following incidents like the collapse of FTX. His proposed legislation seeks to provide a framework for taxing various cryptocurrency transactions, including NFTs and stablecoins. This development reflects a growing trend among states to regulate the crypto space and generate revenue to address pressing social issues.

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