New York State Assemblymember Phil Steck has proposed a 0.2% tax on cryptocurrency transactions, which would include stablecoins, aiming to raise funds for schools to combat substance abuse. Steck argues that if cryptocurrencies are used as currency, they should be taxed like other forms of financial transactions. He estimates that the tax could generate $158 million annually, benefiting upstate New York by expanding existing support programs. While the bill is aimed at addressing educational needs, it has raised concerns among crypto advocates about potentially penalizing users for internal account transfers that incur no profit. Steck suggests that high-frequency trading should also be taxed since it is viewed as unproductive economic activity. His legislation is expected to be debated when the New York legislature returns to session in January. The proposed tax on crypto transactions comes amid broader discussions on cryptocurrency regulations and the impact of stablecoins in the financial ecosystem.

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