- NY’s new bill proposes allowing Bitcoin, Ethereum, and others for state payments like taxes, fines, and fees.
- Assembly Bill A7788 includes a crypto service fee to cover processing costs, ensuring no extra burden on state agencies.
- The bill follows recent crypto fraud legislation, signaling NY’s growing focus on digital asset integration and regulation.
A New York legislative proposal proposes using cryptocurrency for state agency payments. Assemblyman Clyde Vanel introduced Assembly Bill A7788 to amend New York state financial laws allowing digital assets to pay for public services and obligations.
The bill, if passed, would permit the state to accept Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) as payment for financial obligations within state offices. These include taxes, fines, penalties, civil charges, rent, and service fees. The bill serves as a roadmap for informing how cryptocurrencies can further be accommodated into public financial infrastructure as cryptocurrencies only gain more utility in mainstream economic systems.
Service Fees and Operational Considerations
The proposed legislation also includes a crypto payment service fee clause. If it goes into effect, the state will be permitted to impose this fee on crypto-based payments. The fee is expected to cover the operational costs of processing cryptocurrency transactions, such as those of third-party service providers or blockchain issuers.
Bill explicitly states that the service fee charged should not exceed the cost incurred by the state in handling the transaction. Through this clause, accepting cryptocurrency does not become a heavy financial burden on these state operations. It provides flexibility for agencies so that based on their capacity and state of being prepared infrastructure-wise, they can choose to accept or not accept these payments.
Momentum Builds for Digital Asset Legislation
Last month, Assembly Bill A7788 followed another recent bill, Bill A06515, introduced in March 2025. The aim of that bill is to create criminal sanctions for fraud and rug pulls involving cryptocurrency to protect investors and deter fraud in the rapidly dynamic digital asset space.
The two bills join increasing cryptocurrency legislation targeted at New York. Since President Donald Trump entered office in January 2025, the crypto policy of the Trump administration signaled an intent to prioritize cryptocurrency, including encouraging innovation in blockchain technology and more clearly defining national regulatory frameworks.
New York’s proposed legislation is consistent with moves the state has already been making to designate itself a financial technology leader. In addition, it also echoes legislation taken in other states, such as Illinois, which just passed legislation targeting fraud in the crypto space in response to rising deceptive practices surrounding memecoins.
Regulatory Dialogue Expands on National Level
Federal entities are increasing their efforts to become involved in the crypto sector. In March 2025, the U.S. Securities and Exchange Commission (SEC) launched a new initiative through its Crypto Task Force to host four regulatory roundtables in the U.S.
The sessions will be devoted to major issues in the crypto asset industry, such as regulating trading platforms in connection with the custody of digital assets, tokenizing traditional financial instruments, and the impact of decentralized finance (DeFi) on U.S. laws. Acting SEC Chairman Mark T. Uyeda and Commissioner Hester M. Peirce are leading the effort to bring clarity and structure to the oversight of the crypto market with the roundtables.
Expected participants, including legal experts, financial institutions, and technology developers, will provide input on how regulatory frameworks can adapt to the growing digital asset market. The sessions will be available live to the public through SEC.gov, while attendance will be by registration only.
Next Steps for Assembly Bill A7788
The New York State Assembly Committee will review the Assembly Bill A7788. If approved, it would proceed to the State Senate for further consideration. If regulatory support and technological implementation come to fruition, this advancement could lead to greater dimensions of digital asset adoption in government services. New York’s proposed measure is part of a broader shift underway in the U.S. to fit cryptocurrencies into public financial systems as state and federal regulators crank up activity.
