New York State Assembly Bill A523, introduced by Democratic Assemblyman Clyde Vanel, seeks to clarify that state agencies can legally accept cryptocurrency as payment.
He bill allows state agencies to enter into agreements with individuals or entities to accept cryptocurrency for various types of fees, including fines, penalties, taxes, and more.
It is crucial to understand that the bill does not force state agencies to accept crypto payments, but makes it clear that courts must enforce these agreements.
New York accepts crypto payments
The bill defines cryptocurrency as any digital currency that uses encryption techniques to regulate the generation of currency units, including but not limited to bitcoin, ethereum, litecoin, and bitcoin cash.
The bill also acknowledges that some cryptocurrencies have a ‘editor‘ and allows state agencies to charge an additional fee if the issuer of the cryptocurrency charges a fee.
For the bill to pass, it must win the approval of both the New York Assembly and Senate and be approved by Governor Kathy Hochul.
It is worth noting that the New York State government has historically had a hostile relationship with cryptocurrencies. In November 2022, a bill was passed in New York banning most cryptocurrency mining operations within the state.
In addition, the restrictive state’BitLicenseThe law, which requires all crypto exchanges to acquire, has been heavily criticized.
In April 2022, the mayor of New York even called for the repeal of the BitLicense law. Therefore, this bill could be seen as a “step in the right direction” in terms of the state’s stance on cryptocurrencies.
