New York Assemblymember Phil Steck proposed a 0.2% excise tax on cryptocurrency transactions aimed at generating $158 million annually. The revenue from this tax would be used to combat substance abuse in upstate New York, a region grappling with the opioid epidemic. The proposal comes in light of data from Chainalysis and recent GDP statistics that suggest significant transaction volumes in the state. The bill encompasses all crypto transactions, including those involving NFTs, mined assets, and stablecoins. Despite the challenges in obtaining data from the New York Department of Financial Services, Steck's calculations estimate that the state's share of U.S. crypto transactions could yield substantial revenue. Furthermore, the legislation highlights the environmental impacts of cryptocurrency mining and associated scrutiny following the collapse of various crypto firms. Steck’s initiative reflects both an effort to regulate the crypto market in New York and a means to generate additional funding for public health initiatives.

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