The New York State Assembly has received a bill that will legalize state agencies to accept cryptocurrency as a means of payment for fines, taxes, fees, civil penalties, and other state-related dues.
The bill was introduced on Thursday during a legislative session by Clyde Vanel, a prominent cryptocurrency advocate and a member of the Democratic party.
Clyde Vanel serves as the representative of the 33rd district of New York and is quite popular for sponsoring 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
Designated as Assembly Bill A2532, the newly proposed crypto legislation aims to establish cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as a means of payment to all state agencies in the city of New York.
To this end, the bill proposes that these agencies be allowed to form partnerships with relevant entities that will enable the acceptance of crypto assets for settlement of “fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts, including penalties, special assessments and interest, owed to state agencies.”
Following its introduction on Thursday, Bill A2532 has been referred to the New York State Assembly Committee on Government Operations for further study and possible amendments.
According to the legislative process, the bill is still subject to passing by the New York Assembly and Senate body, followed by the approval of the state governor before it can become law.
In other news, Wendy Rogers, a serving member of the Arizona State Senate, also presented a similar bill on Wednesday during a legislative session. The bill by the Republican senator proposed that Bitcoin become a legal tender in Arizona, in addition to authorizing all state agencies to accept cryptocurrency as an official means of payment.
Cryptocurrency Adoption In The U.S.
Following the rapid growth of the cryptocurrency market in the last few years, several states in the U.S. have taken different approaches in engaging with the $1 trillion industry.
States like Nevada and California have embraced the use of digital assets by enacting crypto-friendly legislation that promotes cryptocurrency adoption across various business levels.
On the other hand, states like New York and Hawaii prefer taking strict measures via the implementation of heavy crypto regulations to protect citizens against risks such as market volatility, scams, and so on.
At the federal level, a regulatory framework for the cryptocurrency industry is still in the works following U.S. President Joe Biden’s order last year for relevant authorities to examine the benefits and risks associated with cryptocurrency.
The White House has also published a “roadmap to mitigate cryptocurrencies risks” as the Biden administration calls on appropriate authorities to step up their efforts in setting up the necessary regulations for the crypto sector.
That said, the crypto market is currently on an impressive recovery run following the severe market losses that occurred late last year. According to data from CoinMarketCap, Bitcoin, the market’s biggest asset, is currently trading at $23,217, up by 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