New York Assemblyman Clyde Vanel has proposed Assembly Bill A7788, a new piece of legislation that could legalize the use of cryptocurrency for state payments. If passed, this bill would allow state agencies to accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for a wide range of transactions, including taxes, fines, rent, fees, and other government-related charges.

The bill outlines that state offices could be empowered to authorize digital currency as a valid payment method for civil penalties, special assessments, and interest. This would represent a major shift in how the state interacts with public funds and could position New York as a forward-thinking hub for crypto integration.

To cover operational costs, the legislation also allows the state to impose a service fee for crypto transactions, ensuring that any additional expense tied to processing digital payments—such as transaction fees or blockchain-related costs—is accounted for.

Assembly Bill A7788 marks the second crypto-focused initiative in New York within a short span. In March, lawmakers introduced Bill A06515, aimed at cracking down on crypto fraud and protecting investors from deceptive practices like rug pulls.

This push comes amid a broader national trend, with President Donald Trump’s administration reportedly prioritizing crypto innovation and blockchain leadership in the U.S. Meanwhile, Illinois has also advanced similar legislation to tackle fraud in the crypto space.

Currently under review by the Assembly Committee, Bill A7788 could soon move to the state Senate, signaling that cryptocurrency regulation—and its integration into public services—is gaining serious momentum in America’s financial capital.