New York State has announced a new bill that would allow government agencies to accept cryptocurrencies as payment.
Introduced on January 26 by the Democratic Member of the Assembly Clyde Vanelthe bill A523 of the New York State Assembly suggests making changes to current state finance law to allow the use of cryptocurrencies as part of regulations to state agencies.
Specifically, the bill allows state agencies to enter into “agreements with persons to provide for the acceptance by state offices of cryptocurrency as a means of payment” for various types of fees, including including “fines, civil penalties, rents, rates, taxes, fees, charges, receipts, financial obligations or other amounts, including penalties, special assessments and interest, due to the state”.
The bill defines “cryptocurrency” as any form of digital currency governed by encryption methods and operating without the intervention of a third party. He mentions Bitcoin, Ethereum, Litecoin and Bitcoin Cash as some of the most important cryptocurrencies that could be accepted if the bill passes.
It should be noted that the bill does not require state agencies to accept cryptocurrencies as payment. On the other hand, it offers them the possibility of legally accepting such payments if they agree.
The bill, which was announced Thursday, has been referred to the New York State Assembly Government Operations Committee for further study and possible amendments.
The New York State government’s stance on the crypto market has at times been harsh. The state passed a law last year banning nearly all cryptocurrency mining and requiring companies that operate in crypto to hold both a BitLicense and a traditional money transmission license.
More recently, the New York State Department of Financial Services (New York State Department of Financial ServicesNYDFS) issued new guidelines requiring companies to separate their own cryptocurrency assets from those of their clients. The move was taken after reports emerged of a mix of funds between the exchange FTXnow bankrupt, and its commercial branch Alameda Research.
Crypto sector regulation and enforcement has been a hot topic after the unprecedented collapse of FTX. Just last week, the White House released a roadmap asking authorities to strengthen law enforcement and step up efforts to regulate the crypto sector.
However, other news is encouraging. As noted, US Congressman French Hill said he plans to promote a progressive regulatory framework for digital assets to ensure “America is the place for fintech and blockchain innovation.”
In an article published earlier this month, the World Economic Forum (WEF) a declared that blockchain technology would continue to be an “integral part” of the modern economy. The organization highlighted the widespread applications of crypto and blockchain technologies, adding that their use in the financial services industry is already notable.
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