A proposed bill in New York seeks to legalize crypto, such as Bitcoin, as a method of payment to the state.
If passed, the bill would permit users to use certain cryptocurrencies for payments, including Bitcoin and Ethereum, though the state might impose an extra service charge.
Seeking to modernize state transactions, a New York politician has unveiled a proposal that would authorize government agencies to accept crypto payments, signaling a growing embrace of blockchain technology in the public sector.
Clyde Vanel’s Assembly Bill A7788 proposes a legal amendment that would allow New York state departments to begin accepting digital currencies as valid payment methods.
Under the bill’s proposed changes, state institutions could begin accepting payments in popular cryptocurrencies, including Bitcoin, Ether, Litecoin, and Bitcoin Cash.
According to the proposed bill, state agencies could accept crypto payments for numerous purposes, from civil penalties and fines to taxes, rent, fees, and any other outstanding financial responsibilities, including special assessments and interest.
New York’s attention to cryptocurrency law is evident, with Bill A7788 representing the second crypto-related legislative effort in the state within a little more than a month.
In March, New York introduced Bill A06515 to address cryptocurrency fraud, which would establish criminal penalties to shield investors from rug pulls.
Since President Trump took office on January 20, cryptocurrency legislation has gained momentum, with Trump vowing to prioritize crypto policy and make the US the leading hub for blockchain innovation during his campaign.
If enacted, the bill would significantly transform New York’s treatment of digital assets.
Under the proposed bill, state agencies could incorporate cryptocurrency into their payment frameworks for collecting public funds.
As part of the proposal, the state could apply a service fee on payments made with cryptocurrency.
According to the text, the state may require “a service fee not exceeding costs incurred by the state in connection with the cryptocurrency payment transaction.”
This could involve costs related to transactions or fees payable to the issuers of cryptocurrency.
Assembly Bill A7788 has entered the review phase with the Assembly Committee and could potentially advance to the state Senate shortly.
In the wake of Illinois passing a crypto bill to curb fraud and rug pulls related to memecoin insider schemes, New York has followed suit with its own legislation.
