New York Legislator Proposes Cryptocurrency Transaction Tax

Assemblymember Phil Steck has introduced a bill in New York proposing a 0.2% excise tax on cryptocurrency transactions, with funds intended for substance abuse prevention in schools.

The bill highlights potential compliance challenges for crypto stakeholders and might influence asset transactions in New York, reminiscent of the regulatory impact seen during the BitLicense era.

Phil Steck, a New York Assemblymember, has introduced a bill for a 0.2% tax on cryptocurrency transactions as of August 2025. The tax aims to fund substance abuse programs, impacting crypto markets and stakeholders, with taxation starting September 2025.

Assemblymember Phil Steck introduced Assembly Bill 8966 in New York to tax all digital transactions, including BTC and ETH, aiming at school substance abuse prevention. Targeted assets include cryptocurrencies, NFTs, and altcoins. If passed, this bill could reshape New York’s crypto landscape.

Phil Steck Pushes for 0.2% Digital Transaction Tax

Phil Steck, Assemblymember, New York State Assembly – “The proposed excise tax on digital asset transactions aims to provide essential funding for substance abuse prevention programs in our schools.” Source

The bill proposes a 0.2% tax on transactions starting September 1, 2025. Affected parties include cryptocurrency exchanges, traders, and DeFi protocols. Though specific revenue projections are unpublished, expectations are high due to New York’s role in fintech.

Potential Crypto Business Exodus Amid Tax Concerns

The proposal has led to speculation about a possible exodus of crypto businesses from New York, drawing parallels with past regulatory changes. However, no major exchange closures or mass withdrawals have been confirmed yet.

The bill reflects a potential shift in New York’s financial regulatory strategy. Crypto entities could face new compliance challenges, potentially affecting overall market liquidity and investor behavior within the state.

Comparisons to 2015 BitLicense Regulations

The bill reflects past regulatory efforts like BitLicense (2015), which resulted in significant compliance costs and some exchanges exiting New York. This legislation could echo those withdrawals if compliance burdens prove too high.

Experts speculate that if the bill passes, it may prompt entities to seek lower-tax jurisdictions. Historical trends indicate similar regulatory frameworks often push innovation outside heavily regulated areas, potentially influencing New York’s stance in the broader crypto space.

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