As cryptocurrencies become increasingly adopted globally, regulatory debates are also rapidly growing. This time, the focus is on New York, the financial center of the United States. #Newyork State Assemblyman Phil Steck has proposed a new bill that would directly impose a 0.2% transaction rate on cryptocurrencies. If passed, this bill is expected to contribute approximately $158 million to the state's annual revenue.
Contents of the Bill
According to Phil Steck's proposed bill, the new tax rates would be surpassed by traditional capital gains tax rates. Details of the bill:
Tax Rate: 0.2% for all cryptocurrencies.
Scope:
Major cryptocurrencies such as #bitcoin ($BTC ) and Ethereum (ETH)
NFT trading
Assets obtained through mining and staking
Stablecoin transactions
Tax type: Classified as a "consumption tax," a special transaction tax.
In this context, the law stands out as one of the most comprehensive crypto tax initiatives, encompassing not only trading but also nearly the entire blockchain ecosystem.
Cryptocurrencies and the "Cash Equivalent" Status
New York State is one of eight states that has long considered cryptocurrencies "cash equivalents." Therefore, personal cryptocurrencies can be subject to:
Capital gains tax
Inheritance tax,
Gift tax.
However, the new design will increase the cost of consumption by providing a fixed deduction per transaction, directly above the current limits.
Economic Impacts
The implementation of this regulation will generate over $158 million in annual revenue for New York State. However, it will also:
Permanent investment results: Some savings may be transferred to other states or tax-free platforms due to the tax.
Market Competition: As New York is the financial center of the United States, this law could be expanded to other states by setting an example.
New costs could be incurred in the crypto ecosystem: Direct financial pressure could be exerted, particularly on the NFT market and staking transactions.
The Importance of Regulation
If this bill passes, New York will launch the most comprehensive and direct crypto payment system in the US. This poses both risks and opportunities for the sector:
Risk: The proliferation of crypto outside the state, leading to a shift in savings towards alternatives.
Opportunity: The crypto ecosystem becoming more institutionalized by gaining an "official" framework.
Conclusion
This move by New York could shed light on the future of cryptocurrencies not only in the US but globally. This new approach to taxation has the potential to directly impact both the currency's profit margins and growth.
Whether the bill passes in the coming period and how other states respond to this initiative will be critical to the crypto market's future.
