New York Lawmaker Argues Stablecoins Should Not Be Exempt From Crypto Tax Legislation

New York Assemblymember Gail Brewer contends that stablecoins should be subject to the state’s novel cryptocurrency taxation law. Brewer stated that exempting stablecoins could undermine prospective tax revenue and foster inequitable tax loopholes. She emphasized that stablecoins are assuming an increasingly significant role within the cryptocurrency ecosystem and should be treated similarly to other digital assets for tax purposes. The recently enacted law imposes a 2.5% tax on cryptocurrency mining operations within the state. However, debate persists regarding whether it should encompass stablecoins as well. Certain proponents argue that stablecoins, by virtue of being pegged to the value of traditional assets such as the US dollar, should be treated differently from conventional cryptocurrencies like Bitcoin. Others, like Brewer, posit that the distinction is unwarranted and could lead to complexities in enforcement. The matter remains under discussion, and the law is likely to undergo modifications in the near future.