New York Assemblymember Phil Steck proposed a 0.2% tax on cryptocurrency transactions, which he estimates could generate $158 million annually. The tax aims to support substance abuse prevention and intervention programs in upstate New York, addressing the ongoing opioid epidemic that has severely affected local communities. Steck's bill is designed to capture revenue from crypto investors focusing on quick profits. The bill's broad application includes taxes on NFTs, mined and staked assets, and stablecoins. The revenue would aid the Office of Addiction Service and Supports, which assists over 730,000 individuals annually. Despite the digital assets industry facing scrutiny due to events like the FTX collapse, Steck's proposal reflects ongoing state initiatives to leverage crypto for funding public programs. While crypto is currently treated as cash for tax purposes in New York, the proposed excise tax seeks to further clarify the state's stance on cryptocurrency taxation and its implications for investor activity.

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