New York lawmakers have introduced Assembly Bill 8966 proposing a 0.2% tax on cryptocurrency transactions, aiming for implementation on September 1, 2025, to benefit substance abuse programs.
Introduction of Assembly Bill 8966
New York lawmakers are considering a new tax measure under Assembly Bill 8966, aiming to impose a 0.2% excise tax on cryptocurrency and NFT transactions, beginning September 1, 2025. This proposal is led by Assemblymember Phil Steck.
Funding for Substance Abuse Prevention Programs
Phil Steck, a member of the New York State Assembly, introduced Assembly Bill 8966, which proposes a 0.2% tax on crypto transactions to fund substance abuse prevention in schools. As Steck himself said, “Expanding substance abuse programs is essential to support the health and well-being of students in New York.” The bill was submitted on August 13, 2025.
Impact on Trading Volumes and Market Reactions
If implemented, this bill could affect trading volumes in New York, potentially encouraging traders to relocate activities. It mandates the tax on all digital assets, such as BTC, ETH, stablecoins, and NFTs, without exceptions. Proceeds from the tax will finance programs aimed at supporting students' health and well-being. This measure could alter the liquidity landscape as both individuals and businesses adapt to higher transaction costs in New York.
The proposed Assembly Bill 8966 may have significant implications for the cryptocurrency market in New York, impacting trading dynamics and potential liquidity, as has been seen in the past. Monitoring the developments and potential consequences for the industry is essential.
