New York Assemblymember Phil Steck has introduced legislation that proposes a 0.2% excise tax on cryptocurrency transactions throughout the state. This initiative aims to generate an estimated $158 million annually, with the revenue earmarked for combating substance abuse in upstate New York. The proposed bill, known as Bill A0966, seeks to enhance prevention and intervention programs for schools amid a growing opioid epidemic. Steck's estimates are based on 2022-2023 data from Chainalysis, adjusted for New York's GDP share. The digital assets market will be impacted, including NFTs and transactions involving mining and staking. Recent scrutiny of the crypto industry, particularly after the collapse of FTX in 2022, emphasizes the need for regulation. The New York Department of Financial Services has not provided transaction volume data, leading Steck to extrapolate from national figures, revealing a significant portion of the $1 trillion transacted in cryptocurrencies. The bill highlights the potential for increased oversight and the taxation of the burgeoning crypto market.

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