New York lawmaker proposes taxing stablecoins, calls crypto a "form of entertainment"

State Assemblyman #Newyork , Phil Steck, has proposed a bill to impose a 0.2% tax on cryptocurrency transactions in the state. Notably, he asserts that stablecoins will not be exempt from taxation, arguing that cryptocurrencies are primarily a form of speculation and entertainment.

Purpose and Perspective

Mr. Steck's bill is estimated to generate $158 million annually, which would be used to support schools combating substance abuse in New York State. He believes that crypto investors should support this bill to demonstrate their commitment to community welfare.

Mr. Steck expresses the view that he does not see cryptocurrencies as capable of replacing the dollar in everyday transactions. He likens the taxation of #crypto to having to pay sales tax when buying baseball tickets, and considers it a normal occurrence.

Reactions and Controversial Points

This bill has faced a lot of mixed opinions. Some critics argue that the bill could create difficulties for users, as even money transfers between personal accounts could be taxed, a situation that federal tax does not apply to.

Notably, when asked about the state #Wyoming issuing its own stablecoin, Mr. Steck made comments indicating his lack of understanding of blockchain technology and the differences between consensus mechanisms like Proof-of-Work and Proof-of-Stake.