New York Proposes Cryptocurrency Tax to Fund Schools

New York lawmakers proposed Assembly Bill 8966, imposing a 0.2% excise tax on cryptocurrency transactions, to fund substance abuse programs in upstate schools as of August 16, 2025.

This bill could impact market liquidity and trading practices in New York’s cryptocurrency sector, pending legislative approval and implementation.

Phil Steck, a Democratic Assemblymember, has proposed Assembly Bill 8966 in New York to implement a 0.2% excise tax on cryptocurrency transactions.

This proposal aims to generate funds for school-based substance abuse programs in upstate New York, potentially impacting crypto exchanges operating in the state.

Crypto Transactions in New York to Face 0.2% Tax

Assembly Bill 8966, proposed by Phil Steck, outlines a 0.2% tax on cryptocurrency and NFT sales. The revenue will fund substance abuse programs in upstate New York schools, according to official legislative portals.

Steck, not a crypto industry member, has focused on public health policies. Current crypto market leaders have not yet publicly commented, but the legislative process is ongoing.

“Expanding substance abuse programs is essential to support the health and well-being of students in New York” — Phil Steck, Assemblymember, New York State Assembly (source).

Exchanges Brace for Impacts of Proposed Crypto Tax

The proposed tax would impact transaction facilitators like exchanges. Market reactions predict possible shifts in trading behaviors away from affected exchanges as traders assess compliance costs.

Experts warn that the liquidity might be affected, as traders may gravitate toward alternative jurisdictions. Financial stakeholders are watching the potential revenue generation closely.

Learning from New York’s BitLicense History

New York previously implemented BitLicense in 2015, sparking company relocations. The excise tax, however, could introduce new operational challenges for New York-based exchanges.

Given past outcomes, exchanges might strategically adapt by reconsidering New York operations. Predictions include further relocation, compliance strategies, or introduction of cost efficiencies in anticipation of the bill’s progression.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.