New York Assemblymember Phil Steck proposed a 0.2% excise tax on cryptocurrency transactions in the state, aiming to generate approximately $158 million annually. The revenue is intended to support substance abuse prevention programs in upstate New York, where communities have been severely affected by the opioid crisis. Steck’s legislation, introduced under Bill A0966, would apply to various crypto transactions, including those involving NFTs and stablecoins. The projected revenue is based on data from Chainalysis covering the period from mid-2022 to mid-2023, which estimated $1 trillion in crypto transactions to the U.S. However, the New York Department of Financial Services did not provide specific transaction volume data. Steck highlighted the vulnerabilities faced by the crypto industry, citing concerns of fraud and environmental impacts associated with mining activities. This initiative aligns with similar efforts in other states aimed at leveraging crypto revenues for educational and social purposes.

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