A new bill could authorize the use of bitcoin and other cryptocurrencies for payments to New York state agencies.
The New York State Assembly is considering a bill that could allow New York residents to pay state agencies using digital assets. Bill A7788, introduced by Assemblymember Clyde Vanel, aims to amend the State Finance Law to allow New York government agencies to accept payments in cryptocurrency. The proposal specifically includes Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as authorized digital assets for transactions with state entities.
According to the legislative text, state agencies would be able to receive cryptocurrency payments for “fines, civil penalties, rents, rates, taxes, fees, revenues, financial obligations or other amounts,” in addition to penalties, special assessments, and interest.
If approved, the law would mark a shift in how New York handles digital assets, enabling state entities to integrate cryptocurrencies into the payment infrastructure used for public revenue collection.
The proposal also includes a clause that would allow the state to impose a service fee on those who choose to pay with cryptocurrencies. According to the text, the state could charge “a service fee not exceeding the costs incurred by the state in connection with the cryptocurrency payment transaction.”
The bill has been referred to the Assembly Committee for review and could soon move forward to the State Senate.
New York’s initiative comes shortly after the State of Illinois passed a cryptocurrency law aimed at combating fraud and “rug pulls.”
This is not the first legislative effort related to cryptocurrencies in the State of New York. Last March, Bill A06515 was introduced, aiming to establish criminal penalties to prevent fraud in the digital asset sector and protect investors from rug pulls.
