In a significant move towards integrating digital currencies into public finance, the New York State Assembly has introduced a bill that would permit state agencies to accept cryptocurrencies as payment for various state-related obligations. Assembly Bill A2532, introduced by Assembly Member Clyde Vanel on January 26, 2023, aims to modernize the state’s payment systems by embracing digital assets such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash .
Key Provisions of the Bill
The proposed legislation seeks to amend the State Finance Law by adding a new section that defines “cryptocurrency” as any form of digital currency utilizing encryption techniques to regulate the generation of units and verify fund transfers, operating independently of a central bank. This definition explicitly includes Bitcoin, Ethereum, Litecoin, and Bitcoin Cash but is broad enough to encompass other cryptocurrencies that meet the criteria.
Under the bill, state agencies would be authorized to enter into agreements with individuals or entities to accept cryptocurrency as a means of payment for:
- Fines and civil penalties
- Taxes and fees
- Rent and rates
- Charges, revenue, and financial obligations
- Other amounts owed to state agencies, including penalties, special assessments, and interest
It’s important to note that the bill does not mandate state agencies to accept cryptocurrencies but provides them with the legal framework to do so voluntarily .
Next Steps
For Assembly Bill A2532 to become law, it must pass both the New York State Assembly and Senate and be signed by Governor Kathy Hochul. Given the state’s complex relationship with cryptocurrency regulation, the bill’s progression will be closely watched by industry stakeholders and policymakers alike.
If enacted, this legislation could mark a pivotal shift in how New York engages with digital currencies, potentially setting a precedent for other states considering similar measures.
