New York State is considering a bill that would allow cryptocurrency payments to public authorities, marking a potential shift towards broader digital asset adoption. This step is indicative of the increasing momentum to push cryptocurrencies into the financial system. Both state and federal levels are clamoring for this transition. With other states already accepting crypto for tax payments and the federal government establishing regulatory clarity and strategic reserves, New York's proposal signals a significant step in the evolving landscape of digital finance.

State-Level Initiatives

New York State’s interest in cryptocurrency is nothing new. In 2019 it created the first state-level cryptocurrency taskforce in the country. The taskforce was created to study and provide guidance on how to properly regulate, define, and utilize cryptocurrency within the state.

New Jersey Assemblyman Ron D. Vanel has introduced a bill to allow for payments made to public authorities to be made in cryptocurrency. The bill would define cryptocurrency as any digital currency that utilizes cryptography. It can track the issuance of currency and authenticate the transfer of funds between parties without the need for a central authority. This proposal is part of a larger trend of states adopting a more welcoming attitude towards digital currencies.

More than two years ago, Colorado’s Department of Revenue began accepting tax payments in cryptocurrency. In so doing, this move has created a model for other states to pursue. Likewise, Detroit’s city administration allowed city residents to pay property taxes and other city obligations with cryptocurrency starting in November 2024. These initiatives are a tangible example of cryptocurrency making its way into the regular workings of public finance.

Federal Government's Stance

The federal government hasn’t just been reactive, but instead has been strongly proactive in shaping the cryptocurrency landscape. Former President Trump signed an executive order on January 24, 2025, aimed at 'Strengthening American Leadership in Digital Financial Technology.' This executive order aimed to lay the groundwork for regulatory clarity around digital financial technology, unlocking future innovation and adoption.

In the wake of this executive order, a new presidential working group on digital asset markets was convened. The former Airbnb policy chief, David Sacks, chaired this group. Since then, he has served in the role of White House artificial intelligence (AI) and crypto czar. The establishment of this new working group is a clear indication of how seriously the federal government is taking the rise of digital assets.

This event was interpreted as his commitment to continue making the cryptocurrency industry a fertile ground for development. During the summit, Trump articulated his ambition to position the US as the ‘crypto capital of the world,’ highlighting the strategic importance of digital assets in the global economy.

Regulatory and Strategic Developments

In March, the Trump administration further solidified its commitment to digital assets by signing an executive order to create a ‘Strategic Bitcoin Reserve’ and ‘Digital Asset Stockpile.’ This launch is an impressive example of a next generation approach to production digital currencies as strategic assets.

Alongside these advancements, regulatory concerns remain. Assemblyman Vanel’s bill has been superseded by this new version: NY State Assembly Bill 2025-A6515. This legislative initiative focuses on individual criminal activity perpetrated through crypto fraud. We hope this bill is an early signal that they will prioritize protecting consumers and safeguarding the integrity of the cryptocurrency market.

Cryptocurrency donations are usually made using third-party, online payment systems, such as PayPal. They take a service fee of $1.00 + 1.83% for the payment amount. This added cost is of great concern to users and policymakers alike. They should be sure as they weigh the viability and effectiveness of adopting payments in cryptocurrency.