New York Proposes 0.2% Tax on Digital Asset Transactions

New York Assemblymember Phil Steck has introduced a bill that proposes a 0.2% tax on digital asset transactions, set to commence on September 1, 2025.

The initiative aims to fund substance abuse programs in upstate New York schools, potentially impacting market dynamics and compliance costs for involved digital asset entities.

Assembly Bill 8966 Challenges New York’s Crypto Ecosystem

New York legislators have introduced Assembly Bill 8966, proposing a 0.2% excise tax on digital asset transactions. The tax, effective from September 1, 2025, will fund substance abuse programs in schools. Phil Steck emphasizes its necessity to bolster student health initiatives.

The bill could affect exchanges, traders, and DeFi protocols, potentially increasing transaction costs within New York. If enacted, entities facilitating digital asset transactions would bear the tax burden, leading to possible shifts in trading behaviors.

Thus far, only Phil Steck has officially commented, highlighting public health motivations. According to Phil Steck, “Expanding substance abuse programs is essential to support the health and well-being of students in New York.” Major exchanges, companies, or crypto leaders have not issued any formal statements on this legislative action.

From BitLicense to New Taxes: New York’s Regulatory Evolution

Did you know? New York’s BitLicense, enacted in 2015, significantly impacted crypto operations, causing some companies to exit the market. Assembly Bill 8966 could set another precedent for cryptocurrency regulation.

According to CoinMarketCap, Bitcoin (BTC) currently trades at $117,890.70, maintaining a market dominance of 58.77% with a market cap of $2.35 trillion. Recent trading volume reached $76.41 billion, although it decreased by 27.59% over 24 hours.

Data shows Bitcoin’s price experienced a 14.40% rise over the past 90 days. As of August 15, 2025, Bitcoin’s supply is close to its maximum limit, showcasing its scarcity and potential future value stability. Coincu’s research suggests potential regulatory outcomes of the tax proposal could alter New York’s status in the crypto market. It may drive businesses offshore, impacting the state’s crypto liquidity and technological growth landscape. Further details on Cryptocurrency Tax Laws by State might provide insights on how this could align with or differ from existing regulations.