New York to Approve Crypto Payment Bill for State Agencies

New York legislators have introduced a bill to the State Assembly that would legalize the use of crypto as a form of payment within state agencies.

In effect, state agencies are permitted to accept crypto for payment of fines, civil penalties, taxes, fees as well as other charges. It is still awaiting the approval of the court for it to enter into law although it needs to be approved by the New York Assembly, and the Senate and signed by Governor Kathy Hochul.

Notably, the bill dubbed “New York State Assembly Bill A523” was promulgated by Clyde Vanel, a Democratic Assembly member. Vanel is one of the politicians who is considered to be crypto-friendly. In the past, Clyde Vanel was instrumental in the introduction of bills that addressed crypto fraud and the establishment of a crypto task force. 

The bill affirms that state agencies can be in “agreements with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payment” for various types of fees, including “fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts, including penalties, special assessments and interest, owed to state agencies.”

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These state agencies are not mandated to accept digital assets like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), it is only an additional payment option to the previous approach. It is yet to be clarified if United States-dollar pegged stablecoins like Tether (USDT) or USD Coin (USDC) will also be adopted. 

At the same time, some crypto payments may be conditional until the complete payment is made. Crypto assets with issuers that charge a fee will attract additional charges from the state agencies. The court is yet to make a decision either in favor or against the New York State Assembly Bill A523. It is however important to understand that this is not the first time such a bill is being suggested to the New York Assembly.

Meanwhile, Texas Republican Ted Cruz has suggested to Congress that vendors with Capitol Hill be made to accept cryptocurrencies as a means of payment for food and snacks.

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