New York could take an important step towards the adoption of cryptocurrencies in public services. A new legislative proposal seeks to authorize the use of digital assets such as Bitcoin, Ethereum and Litecoin for the payment of taxes and other government services.
Although the state has not yet considered a law to support Bitcoin as a reserve — unlike some of its neighbors — this initiative could open the door to greater integration of cryptocurrencies in a state known for its strict regulation of the sector.
The Proposal: Government Payments with Cryptocurrencies
The initiative, presented by Assemblyman Clyde Vanel under the name of Bill A7788, proposes to amend the State Finance Act to allow state agencies to accept cryptocurrencies as a means of payment for taxes, fines, rents, fees, and other financial obligations.
According to the text of the bill, each state agency would have the power—but not the obligation—to establish agreements with citizens and companies to accept payments in digital assets. This flexibility would allow each agency to assess whether this option fits with its operational capabilities.
In addition, the legislation authorizes agencies to charge a service fee to cover the costs associated with processing cryptocurrency payments, such as network fees or other technical expenses.
Currently, the project has been referred to the Committee on Government Operations. If approved, it would come into force 90 days after being signed into law.
Political Debate and Regulatory Concerns
Despite legislative progress, not all state leaders are convinced. New York Attorney General Letitia James has called on the U.S. Congress to establish stricter regulatory frameworks for the crypto industry.
James warns that the lack of clear federal oversight could weaken the dollar’s position as a global reserve currency and facilitate illegal activities, such as the financing of adversarial regimes or criminal networks.
“The strength of the dollar is a strategic interest for the United States. Bitcoin and other cryptocurrencies, by enabling instant global transfers, could threaten that leadership,” James said.
While recognizing the innovative potential of blockchain technology, she also stressed the need for clear principles for its regulation: compliance with anti-money laundering laws, mandatory registration for issuers and intermediaries, and the exclusion of cryptocurrencies from retirement accounts, among others.
A Path to Balance
The debate in New York reflects the tension between innovation and financial security. While some see this legislation as an opportunity to modernize state payments, others insist on setting clear limits and safeguards.
If passed with the appropriate measures, the A7788 bill could position New York as a leader in the responsible adoption of cryptocurrencies at the government level.
