- Phil Steck proposes a 0.2% crypto tax by 2025.
- Funds will enhance school substance abuse programs.
- Exchanges and traders face compliance challenges.
New York Assemblymember Phil Steck proposes a 0.2% tax on crypto transactions, effective September 1, 2025, to fund school substance abuse programs, impacting Bitcoin, Ethereum, and other digital assets.
The proposal introduces new compliance challenges, potentially affecting market liquidity and encouraging crypto exchanges to relocate to lower-tax jurisdictions, echoing past regulatory impacts like the 2015 BitLicense.
Assemblymember Phil Steck of New York has proposed a bill for a 0.2% excise tax on cryptocurrency and NFT transactions. The tax aims to fund substance abuse prevention programs in schools, showing a commitment to public welfare. Phil Steck, Assemblymember, New York State Assembly, stated, “The introduction of this bill aims to not only regulate transactions but also to funnel important resources into our schools for substance abuse prevention programs.”
The bill, Assembly Bill 8966, targets Bitcoin, Ethereum, and altcoins. If passed, it will impact exchanges, traders, and DeFi protocols. New tax measures aim to cover any asset utilizing blockchain technology.
The proposed tax could significantly alter market liquidity and operational costs. Industry players express concern over additional compliance pressures, hinting at possible migration to states with more favorable regulations.
Financially, the bill may deter cryptocurrency operations in New York. The burden could lead exchanges and traders to reassess their presence, similar to previous exits during the BitLicense era in 2015.
Experts and analysts speculate on potential shifts in the industry landscape. Immediate market reactions remain muted pending further legislative developments. New regulations reflect New York’s ongoing efforts to control cryptocurrency activities.
Historical trends, such as the 2015 BitLicense, demonstrate possible downturns in crypto business activities. If the tax passes, stakeholders might witness similar market shifts. Critics argue that increased compliance will burden affected parties and limit industry growth.
