New York Bill Proposes Legalizing Bitcoin, Crypto for State Payments

The legislation signals growing political momentum toward public-sector crypto adoption, though a service fee may apply.

New York could soon become one of the first U.S. states to officially accept cryptocurrency payments for public services. A new bill, Assembly Bill A7788, introduced by Assemblyman Clyde Vanel, proposes that state agencies be allowed to accept digital assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) as valid forms of payment.

The proposed legislation would amend New York’s financial laws, opening the door for a broad range of state transactions to be paid in crypto. These include fines, civil penalties, taxes, fees, rent, rates, and other financial obligations, according to the bill’s language.

Crypto Payments for Public Services

If passed, the bill would authorize New York state offices to directly accept cryptocurrency from residents and businesses in exchange for public services or to settle outstanding obligations. The bill reflects a growing shift toward integrating blockchain technology into state-level financial infrastructure.

This legislative move comes at a time when cryptocurrency is becoming more mainstream in policy discussions — particularly since President Donald Trump assumed office in January 2025 and signaled strong support for advancing crypto innovation and making the U.S. a global blockchain leader.

Source: Nysenate.gov

Service Fee May Be Imposed

While the bill represents a forward-thinking approach to financial innovation, it also includes a service fee clause. This would allow the state to impose a fee on cryptocurrency transactions, with the amount not exceeding the administrative or processing costs incurred by the state.

“The state may require a service fee not exceeding costs incurred by the state in connection with the cryptocurrency payment transaction,” the bill reads, leaving room for flexibility depending on market conditions and network fees.

Momentum for Crypto Policy in New York

Assembly Bill A7788 marks the second crypto-focused bill introduced in New York in just over a month. In March, state lawmakers unveiled Bill A06515, which aimed to criminalize cryptocurrency-related fraud and curb deceptive practices such as rug pulls, particularly following a series of high-profile memecoin scams.

New York’s push for crypto legislation also follows similar efforts in states like Illinois, which recently passed a bill to establish consumer protections and regulatory standards in response to growing digital asset fraud.

What’s Next?

Assembly Bill A7788 has been referred to the Assembly Committee for initial review. If it clears the committee stage, it may advance to the New York State Senate for further consideration. If enacted, the bill could represent a significant turning point in how state governments interact with decentralized finance and blockchain technology.

As the debate over regulation versus innovation continues, New York’s latest move suggests a clear willingness to embrace cryptocurrency as a tool for both modernization and financial inclusion within public systems.