Bitcoin News Today: New York Proposes 0.2% Crypto Tax to Fund School Programs

New York state legislators have introduced a bill, designated as Parliamentary Bill No. 8966, proposing a special consumption tax on cryptocurrency sales and transfers, including Bitcoin, Ethereum, and NFTs [1]. The measure seeks to impose a 0.2% tax on all such transactions within the state. If enacted, the bill would generate additional tax revenue, which will be directed toward funding substance abuse prevention programs in schools in upstate New York [1]. The legislation would take effect on September 1, pending approval by the state’s legislative committees, the general assembly, the state senate, and final approval by the governor [1].

The introduction of this bill has amplified the growing regulatory divergence among U.S. states regarding cryptocurrency. While New York moves toward imposing a direct tax on crypto transactions, other states such as Texas and Washington have taken alternative approaches—either offering tax exemptions or imposing no state income tax at all [1]. This disparity highlights the lack of a cohesive national regulatory framework, with each state charting its own course in response to the increasing use and influence of digital assets.

The proposed tax would apply to both individual and institutional crypto transactions, potentially affecting a wide range of participants in the market [1]. This broad scope raises questions about how the tax could impact liquidity, investment behavior, and the operational costs for businesses in the crypto space. The lack of exemptions for specific use cases—such as cross-border remittances—further suggests that the bill is designed to capture a wide range of digital asset activity within New York [1]. Some industry stakeholders may argue that this approach could hinder innovation or discourage investment in the state.

The timing of the bill’s introduction coincides with broader national discussions on cryptocurrency regulation. While the federal government under the Trump administration has signaled a more accommodating stance toward digital assets, New York’s approach appears more cautious, emphasizing oversight and consumer protection [2]. This contrast reflects a growing divide in regulatory philosophies across states, with some favoring innovation and others prioritizing risk mitigation and fiscal responsibility.

In addition to regulatory considerations, the proposed tax could influence the broader economic environment. As markets remain sensitive to policy shifts and regulatory clarity, the introduction of a new tax on crypto transactions may be perceived as an additional burden, potentially affecting investor sentiment and capital flows [2]. The bill’s potential impact on the local crypto ecosystem will depend on how it is implemented and whether it aligns with broader economic goals, such as job creation and technological advancement.

The bill also comes amid increasing interest in cryptocurrency-backed financial products. For instance, a Bitcoin-related treasury company is reportedly preparing to list on the New York Stock Exchange under the ticker “PRTX” [3]. Such developments indicate that the financial sector continues to explore opportunities in the crypto space, despite regulatory headwinds. However, the proposed tax could add an additional layer of cost for investors and traders, which might affect the overall adoption and usage of crypto assets in the region.

Overall, the introduction of Parliamentary Bill No. 8966 represents a significant regulatory shift in New York’s approach to cryptocurrencies. It underscores the growing role of taxation in shaping the future of the digital asset industry and highlights the need for a more coordinated national strategy. As the bill moves through the legislative process, its eventual impact on the market and regulatory landscape will depend on stakeholder feedback, political considerations, and the broader economic environment.

Source:

[1] Bitcoin – [https://en.bitcoinsistemi.com/new-bill-introduced-in-new-york-concerning-bitcoin-and-altcoins-state-disparities-grow/](https://en.bitcoinsistemi.com/new-bill-introduced-in-new-york-concerning-bitcoin-and-altcoins-state-disparities-grow/)

[2] SVET Markets Weekly Update - Aug 4th to 8th 2025 – [https://t.me/svetrating](https://t.me/svetrating)

[3] KuCoin – [https://www.kucoin.com/news](https://www.kucoin.com/news)