New York Congressman Phil Steck introduced legislation on Wednesday that would generate drastic tax revenues from statewide cryptocurrency transactions.
under Building A0966Empire State will use revenues to help fight substance abuse in upstate New York, which has had a serious impact on the community for many years, and will impose a 0.2% excise tax on crypto transactions.
With shared bill memos Decryption On Friday, Steck estimated that the collection would generate $158 million in annual revenue from “the crypto investor (it) being driven by a single motivation: a desire for quick and instantaneous wealth.”
“The funds will be used to expand the substance abuse prevention and intervention program to schools in upstate New York,” another description of the Bill State.
Democrat Steck is on the New York Standing Committee on Alcoholism and Substance Abuse, with the group overseeing the state’s Bureau of Addiction Services and Support. Annual Report. In 2023, 33 of the 100,000 people lost their lives from drug overdose, the report notes.
The legislation comes as some states move forward with other crypto-related initiatives to support schools. It will be cleaned to the Cowboy State Education Fund.
As of 2023, cryptocurrencies like Bitcoin were treated as New York’s tax cash equivalents, among seven other states, including California. Bloomberg Tax. More recent Tax Guide From crypto accounting software company BitWave, it said that digital assets are already covered by New York’s capital gains tax, gift tax and real estate tax, just like any other assets.
In the first format, Steck’s bill is broad, with a wide range of tax impacts on digital assets acquired through NFTs, mining and staking, and digital assets acquired to Stablecoins based on their text.
The New York State Department of Financial Services regulates crypto companies through its Bitlicense regime, but will not provide Steck with data on the volume of Crypto transactions, his memo notes. In a quarterly report, regulators said that. director In 2024, 20 total institutions had 845 million transactions, but the dollar amount was not included.
The data is likely not to capture resident crypto transactions as well, so Steck found a workaround. I said It was sent to the US for around $1 trillion between July 2022 and June 2023, generating $79 billion based on New York’s share of US GDP in 2024.
That number could be high, and New York City serves as the epicenter of the financial world, with more crypto-born companies, including Stablecoin Issuer Circle, Crypto Exchange Gemini and Institutional Firm Galaxy Digital.
Steck highlights scrutiny that following the collapse of Crypto Exchange FTX in 2022, the digital asset industry has described it as “vulnerable to fraud and fraud.” The memo lists Gemini among other companies as a company accused of scaming their clients.
Decryption I contacted Gemini for comment but received no response.
New York Attorney General Letitia James recovered $50 million worth of digital assets from Gemini through last year’s settlement after misleading investors exchanges denounced the exchange for risks associated with its acquisition platform.
In 2023, James filed a lawsuit against the exchange, the Genesis of a Bankruptcy Crypto Lender, and the Cryptoconglomerate Digital Currency Group, for allegedly scamming 230,000 investors out of more than $1 billion.
Steck’s notes highlight the enormous amount of energy that computers consume when participating in mining processes and verifying Bitcoin transactions, describing the environmental impact of cryptocurrencies as “another drawback.”
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