The suggested bill is called Assembly Bill 8966, and it would amend the state taxation to include sales and transfers of digital assets. This incorporates digital currencies, coins, NFTs, and so on blockchain-based assets. Once passed, the taxation scheme would immediately go into effect and all transactions would be subject to tax as of September 1.
The plan comes at a time when the federal and state tax treatment of crypto remains inconsistent. While some states, like Washington, exempt digital assets from taxation, others such as California and New York treat them similarly to cash transactions. According to Bloomberg Tax data, introducing a specific excise tax would set New York apart from states that use lower tax rates to attract crypto businesses.
New York City remains a key hub for traditional finance and digital asset companies. It hosts major firms like Circle, Paxos, Gemini, and Chainalysis. As a global fintech center, a proposed tax could generate substantial revenue from local crypto transactions. New York’s regulatory environment often sparks controversy among industry leaders. Some companies left after 2015’s costly BitLicense requirements. Others, including key players, adapted to the rules and pursued the stability of a regulated market.
