New York Lawmaker Proposes 0.2% Crypto Transaction Tax, Excludes Stablecoin Exemption

New York State Assemblymember Phil Steck has introduced a proposal to impose a 0.2% tax on cryptocurrency transactions within the state. The measure, aimed at generating an estimated $158 million annually, would allocate funds to combat substance abuse in upstate schools through an expanded support program.

Steck explicitly rejected exempting stablecoins from the tax, arguing against their use as everyday currency replacements. "I can’t see crypto being used to take the place of the dollar bill in everyday transactions," he stated, dismissing calls for special treatment of dollar-pegged digital assets.

The proposed tax comes as New York's Office of Alcoholism and Substance Abuse Services faces budget constraints, currently serving only New York City communities. Advocates suggest crypto industry support for the measure could demonstrate commitment to social responsibility while maintaining minimal economic impact.