On May 21, 2025, New York State Assemblyman Clyde Vanel introduced a bill that would allow cryptocurrencies, including Bitcoin, to be used for state and local government payments, covering taxes, fees, fines, and other governmental charges. The proposal aims to expand payment options and facilitate payments with digital assets for the state's residents while strengthening New York's position in the cryptocurrency industry. The bill, submitted under number A8327, represents a significant step toward officially accepting cryptocurrencies in one of America's most prominent states.
According to the bill, government agencies would not directly hold cryptocurrency but would convert it immediately to US dollars through a third-party service provider to mitigate volatility risks. Clyde Vanel, who chairs the Assembly's Technology Committee, emphasised that the proposal aligns with New York's ambition to be a leading digital assets and blockchain technology hub. If passed, New York State would follow the examples of El Salvador and the Central African Republic, which adopted Bitcoin as legal tender in 2021 and 2022, respectively, and US states like Wyoming, where the 2018 HB0070 law already permits government payments in cryptocurrencies.
The bill is currently under review by the New York State Legislature's Governmental Operations Committee and, if approved, is expected to take effect on January 1, 2026. Supporters of the proposal argue that this measure would increase cryptocurrency acceptance and generate positive economic impacts in the state by encouraging innovation and attracting blockchain technology businesses. Experts point out this would be a particularly significant step considering New York State's previously strict regulation of cryptocurrencies, including the controversial BitLicense system introduced in 2015.
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Assembly Bill A7788 would allow New York state agencies to accept Bitcoin, Ether, Litecoin and Bitcoin Cash for fines, taxes and fees—though a service fee may apply. :contentReference[oaicite:1]{index=1}
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Assemblyman Clyde Vanel’s bill (A7788) proposes allowing New York state agencies to accept Bitcoin, Ethereum and Litecoin for payments like fines, taxes and rent—sending a strong signal toward public crypto adoption :contentReference[oaicite:1]{index=1}.
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Semilore Faleti
