- Assembly Bill A7788 allows New York agencies to accept Bitcoin and Ethereum payments under defined agreements with crypto issuers or providers.
- Cryptocurrency transactions must be confirmed in fiat by the issuer before a debt is considered settled, securing state accounting compliance.
- The bill permits state agencies to charge a service fee equal to the transaction costs involved in accepting digital asset payments.
A New York State Assembly bill now permits state agencies to accept cryptocurrency for payments. The proposal updates payment frameworks with defined protocols and extra service charges. The bill awaits further review in committee.
Legislative Framework
Assembly Bill A7788, filed on April 10, 2025, intends to modify the State Finance Law. The bill adds Section 4-b, enabling state agencies to establish agreements with crypto issuers. State agencies would operate under clearly defined terms when processing cryptocurrency payments. The proposal enables the use of major digital assets, including Bitcoin and Ethereum, for settling obligations.
Assemblymember Clyde Vanel sponsors the bill in the Assembly Governmental Operations Committee. Previous bills on similar subjects were introduced in earlier sessions without becoming law. The current proposal incorporates adjustments designed to support payment processing methods. By establishing legal procedures, the bill aims to create a robust operational framework.
The proposal defines responsibilities for both state agencies and crypto issuers. It sets the stage for future contractual agreements. Crypto issuers must confirm final and unconditional payments. The bill provides detailed procedures for executing these digital transactions.
Operational Provisions
State agencies may accept cryptocurrency for a broad range of obligations. Agencies will only consider payments valid after receipt of full fiat value from crypto issuers. The amendment emphasizes that debts remain unsettled until complete fiat conversion is achieved. This measure assists in reducing exposure to digital asset volatility while maintaining sound accounting practices.
The proposed law allows state agencies to impose a service fee on crypto transactions. The fee shall not exceed the costs incurred by the state during payment processing. Agencies may use the fee to manage operational expenses related to cryptocurrency payment transactions. Specific terms will be defined in agreements with crypto issuers or payment providers. Operational protocols will determine how transactions are structured and processed under the bill.
The bill sets clear criteria for acceptable transactions. Terms for acceptance or rejection of cryptocurrency payments are carefully structured. State agencies obtain a structured means to incorporate cryptocurrency into their payment systems. Defined processes will help ensure consistency across state operations.
Committee Review Process
The bill is under thorough review in the Assembly Governmental Operations Committee. Legislators examine each clause to ensure compliance with state financial regulations. Committee members assess the bill’s framework and contractual provisions. Considerations include how the proposal may affect state payment mechanisms.
Upon committee approval, the bill will take effect 90 days after becoming law. State agencies then can transition to include cryptocurrencies in payment systems. The measure establishes clear operational procedures for processing digital currency transactions. Legislative scrutiny continues with detailed discussions among committee members. The review process documents each step to maintain transparency and accountability in state financial practices.
