The bill makes clear that government agencies can legally consent to accept cryptocurrency payments, and that those consents should be enforced by courts.
A bill that was submitted on January 26 in the New York State Legislature would let state organisations to accept cryptocurrencies in exchange for fines, civil penalties, taxes, fees, and other payments that are gathered by the state.
Democratic Representative Clyde Vannell, who is frequently regarded as a crypto-friendly legislator, introduced New York State Legislative Bill A523. This allows government agencies to “ensure the acceptance of cryptocurrencies as a payment method by government agencies for various types of charges, including fines, civil penalties, rents, charges, taxes, charges, levies, and revenues.” can enter into a contract with an individual. , financial… obligations, including fines, special assessments, interest, or other amounts owed to a government agency.
Although the bill does not require government agencies to accept virtual currencies as a payment method, it does require that government agencies can legally agree to accept such payments and that the courts should have the power to enforce these agreements. It is clear that
The bill defines “cryptocurrency” as “any form of digital currency that uses cryptographic technology to regulate the creation of monetary units […] including but not limited to Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. is defined as “unlimited”.
Stablecoins like USD Coin and Tether may or may not be included in this definition depending on how it is read. On the one hand, the issuer, not the cryptocurrency, typically controls the stablecoin supply. On the other hand, the bill acknowledges that some cryptocurrencies have a “issuer” and that the agency will charge the payer an additional fee if the coin issuer levies a fee.
To become law, it must pass the New York State Legislature and Senate and be signed by Governor Kathy Hochul.
The state of New York is frequently perceived as being against cryptocurrencies. New York became the first state to enact legislation outlawing almost all bitcoin mining in November 2022. The stringent “BitLicense” that all bitcoin exchanges are required to obtain has also drawn criticism. The BitLicense Act should be repealed, the mayor of New York City argued in April 2022.