New York Proposes Crypto Tax to Fund School Initiatives

New York State legislators have proposed Assembly Bill 8966, aiming to impose a 0.2% excise tax on cryptocurrency transactions. This initiative seeks to fund substance abuse prevention in upstate school districts starting September 2025.

Phil Steck, the sole sponsor of the bill, strongly supports the enhancement of substance abuse programs in schools. As the bill awaits review, its potential impact on the crypto industry draws significant attention.

The proposed tax targets digital assets such as Bitcoin, Ethereum, and NFTs, reflecting its broad applicability. Despite the proposal’s announcement, there have been no observable shifts in trading volumes or blockchain activity.

The fiscal implications of the proposed tax underscore a targeted approach to generating funds for educational purposes. However, the exact projected revenue remains unspecified, with New York’s active crypto market expected to play a pivotal role.

The tax proposition sets a precedent, as no previous excise tax on digital assets has been enacted in New York. The bill’s approval could influence regulatory trends nationwide, diverging from other states’ approaches.

Potential financial outcomes include shifts in trading behaviors or compliance costs for exchanges operating within New York. Historically, stringent regulations, like the BitLicense, haven’t severely curtailed crypto activities nationwide.

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