New York Proposes 0.2% Transaction Tax on Cryptocurrencies and NFTs

New York lawmakers are pushing for a 0.2% excise tax on all digital asset transactions, including cryptocurrencies and NFTs. Proposed by Assemblymember Phil Steck, the tax WOULD take effect September 1, 2025, with revenues earmarked for substance abuse prevention programs in upstate schools.

The measure targets New York's thriving crypto ecosystem, home to industry giants like Circle, Paxos, and Gemini. Even a modest levy could generate substantial revenue given the city's status as a global financial hub. The state's history of crypto regulation—notably the controversial BitLicense—suggests this move aligns with its dual strategy of oversight and monetization.

Unlike typical tax proposals, this initiative ties blockchain activity directly to social impact. The dedicated funding mechanism may prove politically palatable, though industry pushback is likely given New York's track record of driving crypto firms to more lenient jurisdictions.