NY Lawmaker Proposes Bill To Accept Stablecoins for Bail

New York lawmaker proposes accepting stablecoins for bail payments. Bill seeks to add fiat-collateralized stablecoins to the list of accepted payment methods.
NY Lawmaker Proposes Bill To Accept Stablecoins for Bail

New York lawmaker Latrice Walker has introduced a new bill that proposes to allow bail bonds to accept dollar-pegged stablecoins as a legal form of payment.

New York State Democrat Latrice Walker introduced a partisan bill on May 10, which details the pre-existing methods of paying bail bonds, including cash, insurance bonds, and credit cards. The bill seeks to add “fiat-collateralized stablecoins” to the list.

The bill proposes amending the state’s current criminal procedure law to include the fiat-collateralized class of digital assets.

It is unclear whether New York officials would deem any stablecoins unacceptable or which major “fiat-collateralized stablecoins” would fall under this new purview.

On December 22, 2022, FTX founder Sam Bankman-Fried was released on strict home detention until his criminal trial, after two guarantors posted $250 million in bail to Manhattan federal court on his behalf.

Less than a week after New York Attorney General Letitia James proposed new regulations on May 5 to grant the state further power over crypto exchanges, a new bill has been introduced to allow certain stablecoins to be accepted as payment for bail.

New York officials would be granted the power to issue subpoenas, impose civil penalties on crypto firms violating state law, and shut down companies allegedly involved in fraud or illicit activities under the proposed legislation.

Although the New York state government’s introduction of this bill indicates a willingness to include stablecoins in its criminal procedure law, James has been taking a hard stance on cryptocurrencies in recent months.

James filed a lawsuit against former Celsius CEO Alex Mashinsky on January 5, and she sued the Seychelles-based crypto exchange Kuoin for selling securities and commodities without registration on March 9.

Also Read: The Mystery of Biden’s $18B Crypto Tax Loophole

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