New York may soon allow residents to use digital assets like Bitcoin and Ethereum to pay for services tied to the state.

A proposed piece of legislation, introduced by Assemblyman Clyde Vanel, aims to update existing laws so that various state departments can accept cryptocurrency as a valid form of payment.

Known as Assembly Bill A7788, the proposal outlines how New Yorkers could use select cryptocurrencies—Bitcoin, Ethereum, Litecoin, and Bitcoin Cash—to settle government-related costs. These include taxes, penalties, fees, and even rent owed to public agencies.

To cover the technical costs associated with accepting digital currencies, the bill would let the state apply a small service charge. However, this fee cannot be more than the actual cost of processing the transaction, such as blockchain fees or third-party processor charges.

This isn’t the only crypto-focused legislative effort in the state. Another bill, A06515, was introduced earlier to crack down on crypto-related fraud and deceptive schemes like rug pulls, signaling a broader effort by lawmakers to both regulate and embrace blockchain technologies.

National attention on the sector has also grown following the return of Donald Trump to the presidency. His campaign promised stronger support for crypto innovation, which has encouraged multiple states to explore integration strategies.

Assembly Bill A7788 is still in the early stages, currently awaiting review by the Assembly Committee. If it gains approval and clears the state Senate, New York could become a trailblazer by enabling crypto payments for government obligations.