New York Assemblymember Phil Steck has proposed legislation to impose a 0.2% excise tax on cryptocurrency transactions, which he estimates could generate $158 million each year. This tax aims to provide funding for substance abuse prevention programs in upstate New York, where drug addiction has severely affected communities. Steck, who chairs the Standing Committee on Alcoholism and Drug Abuse, noted that the funding would specifically help schools combat substance abuse issues. The bill encompasses taxes on all aspects of cryptocurrency, including NFTs and digital assets from mining. The calculations for potential revenue are based on Chainalysis data indicating significant crypto transaction volumes in New York, which is further supported by the state's large share of U.S. GDP. The proposal arrives as crypto regulations and initiatives are evolving across various U.S. states, with New York seeking to tap into the crypto economy while addressing pressing social issues. Steck highlighted ongoing concerns about the industry's vulnerability to fraud and scams, underscoring the tax's intention to target wealthy investors aiming for quick profits.

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