New York continues to implement various crypto-related initiatives.
New York could be on the brink of accepting dollar-pegged stablecoins as legal tender for bail bonds.
The move was proposed by a Democratic representative Latrice Walker in the New York State Assembly on May 10th.
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Walker's proposal aims to extend the existing bail payment methods, which currently include cash, insurance bonds, and credit cards, to incorporate "fiat-collateralized stablecoins." This would involve changing the state’s existing criminal laws to accommodate the new class of digital assets.
At the time of writing, it is unclear, which stablecoins would fall under this new regulation, and whether there are any that won't get the green light from New York officials.
Interestingly, the proposal came in the wake of a sizeable bail payment made in December 2022. FTX founder Sam Bankman-Fried was released after his parents paid a $250 million bail.
This isn't the only recent legislative move related to crypto in New York. Just a week prior to Walker's bill, New York Attorney General Letitia James put forward her own proposal to ramp up the state's regulatory power over crypto exchanges.
James' legislation aims to empower New York officials to issue subpoenas, enforce civil penalties for crypto firms in breach of state law, and shut down companies suspected of fraudulent or illegal activities.
On top of that, in January, New York Attorney General filed a lawsuit against former Celsius CEO Alex Mashinsky, arguing that he “made false and misleading statements” regarding Celsius' safety. In response to the suit, Mashinsky claimed that James' lawsuit misrepresents facts and displays a poor understanding of Celsius' operations.
New York's legal landscape around cryptocurrencies is shifting rapidly, with authorities willing to integrate digital currencies into traditional systems while cracking down on malpractice.
