New York Assemblymember Phil Steck has proposed a 0.2% excise tax on cryptocurrency transactions, aiming to generate approximately $158 million annually. The tax is intended to fund substance abuse prevention and intervention programs in schools across upstate New York, where the opioid crisis has posed significant challenges. Steck's legislation, outlined in Bill A0966, draws on data from Chainalysis and GDP figures to estimate potential revenue from the state's crypto transactions, which he believes target investors seeking quick wealth. Current laws classify cryptocurrencies like Bitcoin as cash equivalents for tax purposes. Steck's bill could also capture taxes on NFTs and digital assets obtained via mining or staking. The New York Department of Financial Services provided limited data on transaction volumes, leading Steck to adjust national crypto transaction figures to estimate New York's share. The legislation follows broader trends in other states, like Wyoming, exploring crypto initiatives to support education.

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