New York Assemblymember Phil Steck proposed a 0.2% excise tax on cryptocurrency transactions that could generate an estimated $158 million annually. This revenue would support schools in combating substance abuse in upstate New York, where the opioid crisis has taken a toll on communities. Steck’s legislation aims to tax a wide range of digital assets, including NFTs and stablecoins. The tax proposal comes amid rising scrutiny of the crypto industry following past fraud scandals like the FTX collapse. The funding will enhance existing substance abuse prevention programs, vital given the alarming drug overdose statistics in New York. Steck’s calculations were based on data from Chainalysis reflecting significant crypto transaction volumes, although the New York Department of Financial Services did not provide detailed figures. The proposal reflects a broader trend of states leveraging crypto revenues to support education and health initiatives, similar to initiatives observed in states like Wyoming.

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