New York Assemblymember Phil Steck has introduced legislation to impose a 0.2% excise tax on cryptocurrency transactions. This tax is projected to generate $158 million annually, based on data from Chainalysis and economic statistics. The revenue will be allocated to combat substance abuse in upstate New York, directly addressing the opioid epidemic's impact on communities. Steck, a Democrat and chair of the state's Standing Committee on Alcoholism and Drug Abuse, indicated that the funding would expand substance prevention and intervention programs in schools. Currently, cryptocurrencies are treated as cash equivalents for tax purposes in New York. Steck's bill aims to encompass various digital assets, including NFTs and stablecoins, with regulatory oversight by the New York Department of Financial Services. In light of the scrutiny on the crypto industry post-FTX collapse, the legislation seeks to address issues around fraud and scams within the market, alongside the environmental impacts of cryptocurrency mining.

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