New York Assemblymember Phil Steck proposed a 0.2% excise tax on cryptocurrency transactions, which he estimates could generate approximately $158 million annually. The revenue would be allocated to expand substance abuse prevention programs in upstate New York, funding efforts to combat the opioid epidemic. Steck's legislation stems from research using data from Chainalysis that tracked the dollar value of crypto transactions. Although cryptocurrencies are currently treated as cash equivalents for tax purposes in New York and subject to capital gains tax, this specific levy is aimed at new revenue generation. The proposed tax would apply broadly, affecting NFTs and digital assets acquired through mining and staking. The state’s Department of Financial Services, which oversees crypto firms under its BitLicense regime, has not disclosed detailed transaction volume data. The proposed legislation also reflects an increasing interest among states to create financial mechanisms to support educational resources and tackle pressing social issues through crypto regulation.

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