New York Assemblymember Phil Steck has introduced legislation to impose a 0.2% excise tax on cryptocurrency transactions, estimating it could generate $158 million annually. This tax is aimed at funding substance abuse prevention and intervention programs in upstate New York, where the opioid crisis has taken a toll on communities. The proposed bill, A0966, comes in response to the increasing popularity of crypto trading, with Steck highlighting the tax's potential to aid schools in combatting substance abuse. Leveraging data from Chainalysis, Steck found that between July 2022 and June 2023, approximately $79 billion of crypto transactions could be attributed to New York. This legislation aligns with broader regulatory trends seen in other states concerning cryptocurrency taxation. As cryptocurrencies, including Bitcoin and NFTs, begin to face more taxation similar to traditional assets, the implications for both investors and the digital currency landscape could be significant.

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