- New York’s Assembly Bill A7788 would allow state agencies to accept crypto payments like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for fines, taxes, and other obligations.
- The bill ensures the state remains protected from crypto volatility by requiring full fiat conversion before debts are considered settled.
- If passed, the bill could modernize state operations, but challenges remain as past proposals stalled and adoption in other states has been limited.
New York state agencies may soon be allowed to accept cryptocurrency payments under a newly proposed bill filed this week in the State Assembly.
Assemblyman Clyde Vanel has introduced Assembly Bill A7788 to permit agencies to also accept Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) as payments due to the state towards fines, taxes, rent, as well as other outstanding obligations. Additionally, the bill, which was introduced on April 10, would amend the State Finance Law by adding a new Section 4-b to provide agencies with the legal framework to enter into agreements with issuers of cryptocurrency or third-party payment providers.
The proposal would allow state agencies to negotiate particular terms on how crypto payments should be processed and under what conditions such payments should be accepted or rejected. The legislation also permits agencies to recover the additional costs associated with crypto transactions, both from service fees that issuers or processors may charge and those from any other sources of revenue.
New York Bill Aims to Modernize Payments with Crypto
The money given to the state ‘could be provided in various payment options, including cryptocurrency, to improve convenience for residents and make state operations more modern,’ stated Vanel. “With this bill, agencies are allowed to harness new technologies while remaining fiscally responsible.”
Most importantly, the bill states that received fiat payment does not signify settled debts; instead, the state must receive complete payment in fiat from the issuer of the crypto. This is intended to keep the state in the dark about the notorious volatility of digital assets and to preserve accounting standards.
According to the bill’s summary, it’s important to accept crypto payments without putting the state at risk. “It is only upon the fiat currency conversion being successful that an obligation is said to be fulfilled.”
This isn’t the first time NY legislators have introduced bills to try and incorporate cryptocurrency into the state. A9782 (2017-2018), A1500 (2019-2020), and A2532 (2023-2024) previous versions of the bill also made similar proposals but have since not advanced to law. But as digital assets become more mainstream and accepted and as the public grows more interested in the idea, the latest attempt could be endowed with more momentum.
Assembly Committee to Review Crypto Bill
The Assembly Governmental Operations Committee will be considering the bill. The measure, if passed by the Legislature and approved by Governor Kathy Hochul, would go into effect 90 days after enactment.
New York has been a key jurisdiction within the U.S. cryptocurrency landscape for a long time, with the state‘s BitLicense regulation sometimes referred to as a regulatory bellwether. Advocates boast that New York could gain kudos for becoming a centerpiece of the currency community by accepting cryptocurrency payments, while opponents claim it could be costly and complicated to implement.
Several other U.S. states, including Colorado and Utah, already use frameworks of accepting cryptocurrency for some government transactions, but adoption remains very limited.
A7788 is not on this date for the Assembly Governmental Operations Committee. Vanel’s proposal has since contributed to restarting the debate concerning how public institutions can reinvent themselves for the digital economy without undermining fiscal integrity.
