New York is contemplating a bill that would permit residents to utilize cryptocurrencies like Bitcoin and Ethereum for state-related payments, including taxes. The model legislation, dubbed Assembly Bill A7788, has been introduced by Assemblyman Clyde Vanel. Cryptocurrencies for any payments they need to make. This proposal could pave the way for broader acceptance in a state where crypto has been strictly regulated for years. If passed, the bill would go into effect 90 days after being signed into law.
Assembly Bill A7788 Details
Assembly Bill A7788 proposes that any state agency be allowed to enter into settlement agreements with individuals. The deal will open more ways to accept cryptocurrencies as payments. Individuals may access it to pay off their fines, civil penalties, taxes or other debts due to state agencies.
Each state agency is authorized to enter into agreements with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payments of fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts including penalties, special assessments and interest, owed to state agencies. - Assemblyman Clyde Vanel
If passed, the legislative proposal would enable residents to interact with government services and share information securely using digital assets. This encompasses the leading cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. Still, New York has not introduced a Bitcoin-collateralized reserve bill as its surrounding states have.
Attorney General James's Concerns
AG Tish James has been sounding the alarm on threats to public safety and national security posed by cryptocurrencies in no uncertain terms. James is encouraging his fellow federal lawmakers to support stricter regulations to avoid harmful misuse, but to protect the US dollar’s position on a global scale.
A strong dollar is in America’s national interest. It means there is demand for and confidence in US institutions and the US economy. America should defend the prime position of the US dollar for global transactions—a position that Bitcoin, which can instantly transfer value globally, threatens. - James
James acknowledged blockchain’s innovative potential but cautioned that without clear federal oversight, digital assets could erode the dominance of the US dollar. James emphasized that bad actors can use cryptocurrencies to bypass traditional financial systems, fund adversarial regimes, or support criminal enterprises.
Call for Federal Regulation
James set forth three guiding principles on the regulation of crypto at the federal level. It could undermine the US dollar’s global dominance. Ms. Evans warned that without clear federal supervision, digital assets had the potential to undermine the US dollar’s dominance.
As Congress takes the mantle to propose legislation governing the cryptocurrency industry, we hope it also takes action to mitigate the risks posed by the industry to America’s national security, financial stability, and citizens. - James
James emphasized that bad actors can use cryptocurrencies to bypass traditional financial systems, fund adversarial regimes, or support criminal enterprises.
