New York state authorities have proposed certain amendments to the law that could allow residents to settle bail bonds in stablecoins instead of fiat. The bill could become official six months after regulators give it the go-ahead.
Local lawmakers previously introduced legislation aimed at making certain cryptocurrencies an official means of payment for civil penalties, fines, taxes and other fees.
Another encryption move for New York State
New York Assembly Bill 7024, foot On May 10, it seeks to create a system “to manage the acceptance, registration, and processing of stablecoins as a means of securing custodianship.” However, officials did not disclose which assets would be included in the potential legislation.
The lawmakers cited the volatile nature of the cryptocurrency market, stating that the court may require further collateral if the stablecoin’s valuation drops by more than 50% from the value when the bail was posted.
“If the court orders posting of bail as set forth in paragraph (j) of the subdivision of this section and the value of the stablecoins has decreased by more than fifty percent of the value of the stablecoins at the time of posting of the bail, the court may, at its discretion, order posting of additional bail as provided it in the first subsection of this section,” reads the bill.
Stablecoins pegged to fiat currencies or precious metals are supposed to have a fixed price, but there have been some examples to the contrary. USDC (the second largest stablecoin) dropped as low as $0.87 in March this year after Circle (the company behind the asset) open He was exposed to billions of dollars in the collapse of the Silicon Valley bank. The company fixed the issues in the following days by transferring the funds to another bank, and the token regained its target price of $1.
previous bills
The New York Senate has recently Proposal Another mod that can enable locals to settle various fees (taxes, fines, civil penalties, and more) in Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
The legislation classifies crypto assets as “any form of digital currency in which cryptographic technologies are used to regulate the creation of currency units and verify the transfer of funds, operating independently of a central bank.”
Arizona has also emerged as a crypto-friendly region. Senator Wendy Rogers foot A bill in 2022 seeks to provide legal tender for BTC. While she was unsuccessful in her attempt, she Proposal Another piece of legislation could turn the primary cryptocurrency into an official means of payment in the region.
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