A new bill in New York, introduced by Assembly member Phil Steck, is set to disrupt the world of digital assets by taxing cryptocurrency and NFT transactions for the first time.
The bill proposes a 0.2% excise tax on all digital asset transactions, including cryptocurrencies and other blockchain-based assets. If it passes, the tax would kick in from September 1, 2025.
Unlike many taxes, the revenue from this measure wouldn’t disappear into the general state budget. The bill directs all proceeds to substance abuse prevention and intervention programs for schools in upstate New York. Lawmakers believe tying the tax to a social initiative will ensure ongoing support for an issue that impacts young communities.
Impact of the Tax
New York City (NYC) is one of the world’s biggest financial and fintech hubs, with billions in digital assets changing hands. The city is home to major crypto companies like Circle Internet Group, Paxos, Gemini, and Chainalysis. Given that the city has such attention from the crypto industry, even a small tax could bring in significant revenue for the state.
The state was an early player in crypto regulation, launching the BitLicense in 2015. The move was welcomed by some as regulatory clarity but criticized by others for driving businesses away. This new proposal reflects the state’s ongoing approach to both regulate and monetize the growing digital asset sector.
What’s Next?
Before the bill can take effect, it must navigate the full legislative process, starting with a committee review, advancing to a vote in the Assembly, then passing through the Senate. Only after clearing these stages will it land on the governor’s desk, where it could be signed into law or rejected.
In the United States, crypto taxation rules differ widely by state. As per the Bloomberg Tax, California and New York treat crypto like cash, while Washington exempts it from taxes entirely. Texas even cuts certain taxes to attract businesses. New York’s decision could influence how other states approach crypto taxation.
Also Read: Indonesia’s Crypto Tax Revenue Surges, New Regulations Signal
