New York is taking a significant step towards embracing digital assets, as a new bill proposes allowing state agencies to accept cryptocurrency payments for a range of public services and obligations. If passed, the legislation would mark a major shift in the integration of blockchain-based payment systems within government operations.
Assembly Bill A7788 Introduced
The proposed law, Assembly Bill A7788, was introduced by Assemblyman Clyde Vanel and seeks to amend state financial law to permit the use of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for payments to state agencies. According to the bill, payments could be accepted for fines, penalties, rent, rates, taxes, fees, charges, and other financial obligations.
The legislation would allow state offices to authorize crypto transactions at their discretion, further signalling growing political support for digital asset adoption in public services.
Additional Service Fee Proposed
One of the notable features of the bill is the provision for a potential “service fee” on cryptocurrency transactions. The fee, which must not exceed the cost incurred by the state for processing the crypto payment, could include blockchain transaction fees or any charges from crypto issuers. This clause aims to ensure that the adoption of crypto payments does not burden the state financially.
Part of Broader Crypto Legislative Movement
Assembly Bill A7788 is the second crypto-focused proposal to emerge from New York in just over a month. In March, lawmakers introduced Bill A06515, which aims to establish criminal penalties for cryptocurrency-related fraud, including the prevention of “rug pulls”—a common scam in which developers abandon a project and take investor funds.
The increasing pace of crypto-related legislation coincides with a broader national push, as the administration of President Donald Trump, who assumed office on 20 January, has signalled its intention to prioritise crypto policy and position the United States as a leader in blockchain innovation.
Awaiting Committee Review
The bill has been referred to the Assembly Committee for review. If it gains approval, it may advance to the New York State Senate for further consideration. If passed into law, the measure would not only establish a new payment avenue for residents but could also set a precedent for other states considering similar legislation.
This move follows a recent decision by the state of Illinois, which passed a bill aimed at curbing crypto fraud and increasing investor protections. New York’s proposal indicates that momentum for responsible crypto integration in public policy is growing at both state and national levels.
