New York Senate Bill Proposes Legalizing Crypto for Payment in State Agencies

A new bill introduced to the New York Senate seeks to make certain cryptocurrencies a legal form of payment for state agencies.

This would include accepting crypto as payment for civil penalties, fines, taxes, and other fees charged by the state. 

• As detailed in the legislation set forth on Thursday, accepted cryptocurrencies would include Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, though it could include more. 
• Specifically, the legislation describes cryptocurrency as “any form of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.” 
• The bill would allow the state to voluntarily enter into agreements “with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payment,” though they would not be legally bound to accept such transactions. 
• The proposal was introduced by Democratic Assembly Member Clyde Vanel. He is often regarded as a crypto-friendly politician, though many members of his party oppose crypto for fears of its environmental impact and use for sanctions evasion. 
• Last week, a bill was introduced in Arizona by senator Wendy Rogers to make Bitcoin and other cryptos legal tender across the state. Like Vanel’s bill, it would allow state agencies to enter agreements with cryptocurrency issuers to provide a pathway to citizens for paying taxes rent, and fines in crypto. 
• Rogers proposed a similar bill in January 2022, but it didn’t appear to gain traction.