New York Assembly Considers Cryptocurrency Payments for State Obligations

The New York State Assembly is taking an important lead by considering Bill A7788. This legislative proposal would allow state agencies to begin accepting cryptocurrency payments. Assemblyman Clyde Vanel was the bill’s primary sponsor to amend the state’s usury laws. This amendment will pave the way for the state to start accepting digital currencies, such as Bitcoin and Ether in payment of all sorts of state obligations. The bill has been re-assigned to the Assembly Committee for consideration.

To that end, Bill A7788 explicitly names Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) as acceptable payment. If the proposal is approved, offices of state government will receive the jurisdiction to receive cryptocurrency as payment. This is not just limited to penalties, special assessments, and interest payments. This measure signifies a potential modernization of the state's financial infrastructure, accommodating the growing prevalence of digital assets in financial transactions.

Assemblyman Vanel's bill aims to integrate cryptocurrencies into the state's financial system. As written, the law would permit state residents to discharge their debts and duties to the state with cryptocurrencies and stablecoins. This provides a unique new complement to the existing payment landscape.

The bill’s next step will be a closer look by the Assembly Committee. If it’s able to pass through the Assembly, it would then likely move into the state Senate, where the bill could see additional consideration. If Bill A7788 passes successfully, it could radically reshape New York’s regulatory landscape for digital assets. This important and historic change will likely encourage many other states to take similar steps.

If Bill A7788 becomes law, New York would join a growing number of jurisdictions exploring the integration of cryptocurrencies into government operations. This Tulip move would simplify how residents are paid, lower costs of payment transactions, and increase transactional access to cash and other financial products.