New York is setting its sights on becoming a trailblazer in the mainstream adoption of cryptocurrencies. Clyde Vanel, a member of the New York State Assembly, has tabled a bill that, if passed, would permit state agencies to accept digital currencies, like Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), as legitimate forms of payment.
Under the provisions of Assembly Bill A7788, state departments could leverage these digital assets to collect payments for a variety of charges. These include fees, fines, rent, taxes, as well as any financial obligations. The bill extends this authorization to special assessments, penalties, and interest too.
This move is the latest in a wave of crypto-related legal developments in the Empire state. In March, New York Legislature also introduced Bill A06515. The principal aim of this legislation is to institute criminal penalties for deterring cryptocurrency fraud and protecting investors from deceptive investment schemes known as ‘rug pulls’.
Since the start of President Trump’s term in office, a growing focus has been put on cryptocurrency legislation. Trump expressed during his campaign a desire to prioritize cryptocurrency policy and assist the United States in becoming a global center for blockchain innovation.
However, Bill A7788 does contain a caveat. If enacted, the legislation could usher in state “service fees” on crypto payments. The proposed fees would not exceed the costs incurred by the state in processing the cryptocurrency transactions. This might encompass the transaction charges or fees levied by the issuing entity of the cryptocurrency.
The bill is currently with the Assembly Committee for review. If approved, the legislation could move towards being presented in the state Senate. The move towards integrating cryptocurrencies in public fund collection reflects the larger trend of embracing digital assets, following Illinois, which recently passed a crypto bill aimed at combatting fraud and ‘rug pulls’.