NY Bill: Bitcoin for Taxes?

New York Explores Bitcoin Tax Payments

A groundbreaking proposal in New York, Assembly Bill A7788, seeks to allow residents to pay state taxes and other government fees using cryptocurrencies like Bitcoin, Ethereum, and Litecoin. This move, if successful, would mark a significant shift towards mainstream crypto adoption in a state known for its stringent crypto regulations.

A7788: Details of the Proposed Legislation

Introduced by Assemblyman Clyde Vanel, the bill amends New York's state finance law to permit state agencies to accept crypto payments for various obligations, including taxes, rent, fines, and fees. Agencies would have the option to accept crypto, not a requirement, allowing them to assess feasibility based on their operations. The bill also permits agencies to charge a service fee covering only the actual processing costs.

Key Features of A7788:

• Allows (but doesn't require) state agencies to accept crypto payments.
• Permits agencies to cover transaction costs with a service fee.
• Currently under review by the Committee on Governmental Operations.
• Will go into effect 90 days after being signed into law (if approved).

Regulatory Debate Continues

While this bill signifies a potential thaw in New York's crypto stance, concerns remain. Attorney General Letitia James has voiced concerns about the lack of robust federal crypto regulation, warning of potential risks to the US dollar's dominance, national security, and facilitation of illicit activities. She advocates for stricter AML compliance, registration requirements for issuers and intermediaries, and the exclusion of crypto from retirement accounts.

Attorney General James' Concerns:

• Potential threat to the US dollar's global dominance.
• National security risks associated with unregulated crypto use.
• Increased potential for illicit financial activities.

The ongoing debate highlights the challenge of balancing crypto innovation with robust regulatory oversight to safeguard the public and the economy.

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