What happened?
New York Assembly Member Phil Steck has introduced legislation for a 0.2% excise tax on digital asset transactions, including crypto and NFT sales. This proposed bill aims to generate state revenue by targeting the growing digital asset sector. If passed, it would take effect on September 1, 2025, highlighting another state-level attempt to leverage the financial opportunities presented by emerging technologies.
Who does this affect?
The proposed legislation would primarily affect individuals and businesses involved in cryptocurrency transactions within New York state. This includes exchanges, traders, and DeFi protocols that facilitate the sale or transfer of digital assets. These entities may face compliance challenges, as they would be responsible for ensuring the tax is applied to applicable transactions.
Why does this matter?
The introduction of this tax could have a significant impact on the crypto market by potentially influencing trading volumes and operational costs in New York. As states take different approaches to crypto taxation, this could set a precedent for others contemplating similar measures. The success of this tax in New York could lead other states to follow suit, which might affect the overall attractiveness of the United States as a hub for cryptocurrency innovation and business.