New York Introduces Crypto Bill Targeting Bitcoin, NFTs, and Other Digital Assets

Highlights:

• New York has introduced a crypto bill with a 0.2% tax to fund school programs focused on substance abuse prevention.
• The proposed tax will apply to all cryptocurrency and NFT transactions starting September 1 if it becomes law.
• Revenue from the tax will support education programs while impacting traders and businesses in the digital asset sector.

New York has introduced a crypto bill seeking to impose a 0.2% excise tax on sales and transfers of digital assets. Democratic Assembly member Phil Steck presented Assembly Bill 8966 to address the growing volume of cryptocurrency activity in the state. The bill includes cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and similar digital assets.

🚨 New York is coming for crypto users. A proposed bill would tax both crypto sales AND transfers — potentially a first in the U.S. If passed, this could shift the regulatory map and change how platforms do business in NY. ⚖️ #CryptoRegulation #TaxPolicy #Web3 #DeFi pic.twitter.com/h1pP1X6Ufb

— ₿itBlitz (@BitBlitz) August 15, 2025

If passed, the bill would take effect immediately and cover all qualifying sales or transfers starting September 1. Lawmakers designed the measure to expand the state’s tax laws and generate new revenue from the digital asset market.

The legislative path includes several steps before final approval. The bill must first clear a committee review. It will then move to the full Assembly for a vote. If the Assembly passes it, the bill will proceed to the Senate. After Senate approval, the proposal will reach the governor for a final decision.

New York Introduces Crypto Bill to Fund School Programs

The proposed tax would direct its revenue toward substance abuse prevention and intervention programs in schools across upstate New York. Legislators are trying to direct the proceeds of the rapidly expanding cryptocurrency industry towards social projects. The excise tax of 0.2% would be charged on every sale or transfer of a digital asset made in the state. Although the rate might seem low, traders who engage in frequent or high-value transactions might accumulate more in the long run.

The engagement of New York in the regulation of cryptocurrency is not new. The state announced the introduction of the BitLicense, a licensing system that transformed the local crypto market in 2015. Certain companies exited following the demands to comply, and others like Circle, Paxos, and Gemini stayed and adjusted to the regulations. Meanwhile, MoonPay recently secured BitLicense and money transmitter licenses from NYDFS to expand its services.

Not only did @moonpay establish its HQ in April in NYC, it took them a New York minute when in June they secured a BitLicense. While they 'were' based in Florida, they clearly went over the moon for NY for regulatory benefits. fyi @samanthaolande https://t.co/nOzYQ1IQiz

— Jason Brett (@RegulatoryJason) July 27, 2025

Other U.S. states have adopted different approaches. California treats cryptocurrency like cash in certain situations. Washington exempts some digital asset activity from taxation. The proposed New York tax could make it one of the more extreme states in dealing with digital asset transactions. The bill may have far-reaching effects, considering the city is a prominent financial center. New York is also home to industries and institutions that are heavily involved in digital assets, as well as trading and blockchain analytics firms.

Crypto Measures Taken by Other States and Countries

In other states, legislators have introduced bills that aid the growth of the crypto sector. The Ohio House of Representatives passed a bill that considers the tax exemption of digital asset transactions worth less than $200. The state is also considering allowing residents of the state to use cryptocurrencies to pay for fees and taxes.

On the global stage, some countries are moving to reduce crypto taxes. For instance, Italy is considering reducing the planned hike on crypto taxes from 42% to 28%. Meanwhile, Cynthia Lummis and Bernie Moreno recently presented a proposal to the US Treasury. The proposal aims to fix how digital assets are taxed under the Corporate Alternative Minimum Tax.