New York’s new crypto bill could finally let residents pay state taxes in Bitcoin, but of course the Attorney General is furiously clutching her pearls about it.
At a Glance
- Assembly Bill A7788 proposes allowing New York state agencies to accept Bitcoin, Ethereum, and other cryptocurrencies as payment for taxes and fees
- Democratic Assemblyman Clyde Vanel is championing the bill, creating a rare moment of financial freedom in the Democrat-dominated state
- State Attorney General Letitia James opposes crypto expansion, claiming Bitcoin “threatens” the US dollar’s global position
- The bill would make payments optional for agencies, not mandatory, with debts only settled once converted to fiat currency
New York’s Crypto Payment Revolution
In what can only be described as a shocking departure from New York’s typically suffocating approach to cryptocurrency regulation, Assembly Bill A7788 has emerged from the depths of Albany. The bill, filed on April 10, 2025, would allow state agencies to accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for everything from taxes to parking tickets. Yes, you read that correctly – the same state that created the notorious BitLicense, which drove countless crypto businesses out of New York, is now considering letting you pay your speeding tickets with Bitcoin.
Assemblyman Clyde Vanel, the bill’s sponsor, has crafted legislation that would amend the State Finance Law by adding Section 4-b, specifically titled “CRYPTOCURRENCY AS A FORM OF PAYMENT.” The proposal defines cryptocurrency as “ANY FORM OF DIGITAL CURRENCY IN WHICH ENCRYPTION TECHNIQUES ARE USED TO REGULATE THE GENERATION OF UNITS OF CURRENCY AND VERIFY THE TRANSFER OF FUNDS, OPERATING INDEPENDENTLY OF A CENTRAL BANK.” For once, a politician who actually understands what cryptocurrency is – mark your calendars, folks.
The Devil’s in the Details
The bill isn’t forcing agencies to accept crypto – it’s simply giving them the option. State offices would be authorized to “enter into agreements with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payments 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.” Translation: They can take your Bitcoin for your parking tickets if they want to.
“Each state agency is authorized to enter into agreements with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payments 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,” the bill stated.
The legislation includes provisions allowing agencies to charge service fees to cover transaction costs – because we all know government can’t resist tacking on extra fees. More importantly, debts aren’t considered settled until the state receives the full amount in good old-fashioned fiat currency. This protects the state from volatility while still giving citizens more payment options. The bill is currently sitting in the Assembly Governmental Operations Committee and would take effect 90 days after becoming law if approved.
The Empire State Strikes Back
Not everyone in New York’s power structure is thrilled about this potential step toward financial freedom. Attorney General Letitia James – the same one who seems to spend most of her time filing lawsuits against Donald Trump – has come out strongly against crypto expansion. In a statement that perfectly captures the establishment fear of decentralized currency, James claimed Bitcoin actively threatens America’s financial dominance.
“A strong dollar is in America’s national interest. It means there is demand for and confidence in US institutions and the US economy. America should defend the prime position of the US dollar for global transactions—a position that Bitcoin, which can instantly transfer value globally, threatens,” James stated.
There it is, folks – the real reason government officials fight crypto adoption. It’s not about protecting consumers; it’s about maintaining control. James even went on to beg for federal intervention, stating, “As Congress takes the mantle to propose legislation governing the cryptocurrency industry, we hope it also takes action to mitigate the risks posed by the industry to America’s national security, financial stability, and citizens.” Because nothing says “financial freedom” like pleading for more regulations from Washington D.C.
The Path Forward
This isn’t the first time such legislation has been proposed in New York, with similar bills dying in previous sessions. But with Bitcoin reaching new all-time highs and mainstream adoption accelerating, the pressure to acknowledge cryptocurrency’s legitimacy is mounting. The proposal reflects the growing divide between those clinging desperately to centralized monetary control and those embracing the financial innovation that blockchain technology enables.
What’s particularly remarkable about this bill is that it’s coming from deep-blue New York – hardly a bastion of financial libertarianism. Yet even there, the momentum behind cryptocurrency is becoming too powerful to ignore. If the bill passes, it would establish a 90-day timeline for implementing the necessary regulations, potentially providing New Yorkers with a taste of the financial freedom that residents of more crypto-friendly states already enjoy.
