A new bill, Assembly Bill 8966, has been introduced in the New York State Assembly that would impose a 0.2% excise tax on all crypto and NFT transactions. If passed, the tax would take effect on September 1 and apply to the sale and transfer of all digital assets. The bill’s sponsor, Democratic Assembly member Phil Steck, intends for the revenue generated to fund substance abuse prevention and intervention programs in schools throughout upstate New York.
This proposed legislation is particularly significant given New York’s status as a major global financial and fintech hub. The state is home to numerous major crypto firms like Circle, Paxos, and Gemini, and this new tax could generate substantial revenue. The bill faces several hurdles, as it must pass through the Assembly, the Senate, and be signed by the governor before it can become law.
The proposal also highlights the varied approach to crypto taxation across the U.S. While some states have specific rules, others, like New York, currently treat crypto like cash. In contrast, states like Washington exempt crypto from taxes altogether. New York has a history of being a leader in crypto regulation, having introduced the “BitLicense” in 2015, which led to some companies leaving the state while others embraced the stricter regulatory environment.
August 2025, Cryptoniteuae
