New York Assemblymember Phil Steck has proposed a 0.2% excise tax on cryptocurrency transactions, which could generate approximately $158 million annually. This tax is intended to fund substance abuse programs in upstate New York, particularly in light of the ongoing opioid crisis. Steck's estimation is based on transaction data from cryptocurrency analytics firm Chainalysis and the state's GDP statistics. Currently, cryptocurrencies are treated as cash equivalents for tax purposes in New York. Steck's legislation highlights the considerable energy consumption associated with cryptocurrency mining and the potential for fraud within the industry. The proposed tax revenue aims to address both financial and social issues related to drug addiction, while contributing to the state's budget for educational initiatives. The broader implications include New York's position in regulating the cryptocurrency sector as more states enact laws impacting digital assets.

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