The New York State Assembly has passed a bill that would legalize state agencies to accept cryptocurrency as a means of payment for fines, taxes, fees, civil penalties, and other state dues.
The bill was introduced on Thursday during the legislative session by Clyde Vanel, a prominent cryptocurrency advocate and member of the Democratic Party.
Clyde Vanel is a representative of New York’s 33rd district and is popular enough to sponsor several crypto-friendly bills in the past, most notably the Cryptocurrency and Blockchain Study Task Force bill.
Proposed Bill Will Allow State Agencies to Accept Crypto as Payment
Billed as Assembly Bill A2532, the newly proposed crypto law aims to establish cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as means of payment for all state agencies in the city of New York.
To this end, the bill proposes that the agency be allowed to establish partnerships with relevant entities that will allow them to receive crypto assets for settlement”fines, civil penalties, rents, rates, taxes, fees, costs, revenue, financial obligations or other amounts, including fines, special assessments and interest, payable to state agencies.
After its introduction on Thursday, Bill A2532 was referred to the New York State Assembly Committee on Government Operations for further study and possible amendments.
According to the legislative process, the bill still needs to be passed by the New York Assembly and Senate bodies, then approved by the state governor before it can become law.
In other news, Wendy Rogers, a member of the Arizona State Senate, also introduced a similar bill on Wednesday during the legislative session. The bill by Republican senators proposed that Bitcoin become legal tender in Arizona, in addition to authorizing all state agencies to accept cryptocurrency as an official means of payment.
Cryptocurrency Adoption In The US
After the rapid growth of the cryptocurrency market in the past few years, several states in the US have taken a different approach to participate in the $1 trillion industry.
States like Nevada and California have embraced the use of digital assets by passing crypto-friendly laws that promote cryptocurrency adoption at various levels of business.
On the other hand, states like New York and Hawaii prefer to take strict measures through the implementation of heavy crypto regulations to protect citizens from risks such as market volatility, fraud, etc.
At the federal level, the regulatory framework for the cryptocurrency industry is still under way following US President Joe Biden’s order last year for the relevant authorities to review the benefits and risks associated with cryptocurrency.
The White House has also published a “road map to reduce the risk of cryptocurrencies” as the Biden administration asked the appropriate authorities to step up efforts to set the necessary regulations for the crypto sector.
That said, the crypto market is currently in an impressive recovery after the severe market losses that occurred late last year. According to data from CoinMarketCap, Bitcoin, the market’s largest asset, is currently trading at $23,217, up 0.72% in the last 24 hours.
BTC trading at $23,199.00 | Source: BTCUSD chart on Tradingview.com
Featured Image: National Geographic Kids, Chart from Tradingview.com