A legislator from New York has proposed a bill that would enable state agencies to accept cryptocurrency as a form of payment, reflecting a growing trend in political support for the incorporation of digital assets within public services.
Assembly Bill A7788, put forth by Assemblyman Clyde Vanel, aims to modify state financial regulations to allow New York state agencies to receive cryptocurrencies for payments.
The legislation would permit acceptance of Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) as payment options, as outlined in the bill’s text.
Source: Nysenate.gov
The proposed legislation allows state offices to accept cryptocurrency payments for various obligations including “fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts,” alongside penalties, special assessments, and interest.
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Cryptocurrency legislation is gaining traction in New York, with Bill A7788 being the state’s second crypto-related proposal in just over a month.
Previously in March, New York presented Bill A06515, which aimed to create criminal penalties to combat cryptocurrency fraud and safeguard investors from rug pulls.
Since President Donald Trump took office on January 20, there has been a noticeable increase in crypto-related legislation, as he has indicated that his administration intends to prioritize crypto policy and position the U.S. as a global center for blockchain innovation.
Related: Illinois Senate passes crypto bill to fight fraud and rug pulls
New York might impose a state “service fee” on crypto transactions
If approved, the bill would represent a pivotal change in the way New York addresses digital assets, permitting state entities to incorporate cryptocurrency into the payment systems for collecting public funds.
The proposal also includes a provision that allows the state to charge a service fee for those opting to pay with cryptocurrency. According to the bill’s text, the state may impose “a service fee not exceeding costs incurred by the state in connection with the cryptocurrency payment transaction,” which may cover transaction costs or fees owed to cryptocurrency providers.
Assembly Bill A7788 has been sent to the Assembly Committee for evaluation and could move forward to the state Senate as the next phase.
This legislation in New York follows closely on the heels of Illinois passing a crypto law aimed at combating fraud and rug pulls, particularly in light of recent insider schemes linked to memecoins, as reported by Cointelegraph on April 11.
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