New York Assemblymember Phil Steck has introduced a bill proposing a 0.2% excise tax on cryptocurrency transactions, estimated to generate $158 million annually. The revenue is intended to combat substance abuse in upstate New York, particularly amid the ongoing opioid crisis. The legislation, known as Bill A0966, aims to provide funding for expanding substance abuse prevention programs in schools, highlighting the devastating impact of drug overdoses in the state. The proposed tax would apply broadly, affecting all crypto transactions, including NFTs and digital assets from mining. Steck's estimates are based on Chainalysis data and the state's share of U.S. GDP. Many other states, like Wyoming, are also exploring innovations linked to cryptocurrencies to support educational initiatives. The New York Department of Financial Services has reported millions of crypto transactions but has not disclosed total dollar amounts, leading Steck to rely on external data for his projections. His efforts to regulate the crypto market further come in the wake of increased scrutiny following scandals in the industry.

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