New York’s Democrat Assemblymember Phil Steck has introduced a controversial bill seeking to tax crypto sales and transfers. This is an addition to the Democratic Party’s ongoing skepticism toward the cryptocurrency industry.
Assembly Bill 8966 proposes a 0.2% excise tax on all digital asset transactions, including crypto sale and transfers, with immediate effect.
This is also applicable to digital coins, non-fungible tokens (NFTs), and similar assets.
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If enacted, this law would commence on September 1,2025, potentially stifling innovation in one of the world’s leading fintech hubs.
Reception to thebill to tax crypto sales and transfers
Critics argue that this bill resonates with the over all antianti-crypto stance held by Democrats.
Democratic party has historically favored heavy regulation of crypto.
By targeting crypto sales and transfers with an additional levy, the bill could deter investors and businesses from engaging in the sector.
This also adds to the financial burdens already faced by crypto enthusiasts in a volatile market.
New York City, home to billions in crypto investments and a magnet for fintech firms, risks alienating key players who have embraced digital assets for financial products and services.
Some argue that the bill designates the generated revenue for expanding substance abuse prevention and intervention programs in upstate New York schools.
Democrats like Steck appear to prioritize funding public programs through what some call “innovation-killing” taxes, rather than exploring pro-crypto incentives that could boost economic development.
Democratic party has also been critical of the Trump Administration and the president’s crypto activity.
State level crypto taxation varies widely across the U.S. with differing attitudes.
States like Texas have eliminated certain taxes to attract crypto businesses and have gone on to create Bitcoin reserves.
Meanwhile, Democrat-leaning California and New York, treat digital assets akin to cash, subjecting them to rigorous fiscal scrutiny.
The legislative path ahead for this bill that aims to tax crypto sales and transfers is rigorous. The bill must clear committee review, secure approval from the full Assembly, advance through the Senate, and ultimately gain the governor’s signature or face a veto.
