Assembly Bill 7024 seeks to give stablecoins a status of official means of payment for bail bonds inside the state of New York.
The authorities of New York state proposed certain amendments to the law that could allow residents to settle bail bonds in stablecoins instead of fiat currency. The bill could become official six months after the relevant regulators greenlight it.
Domestic lawmakers have previously introduced legislation that aims to make certain cryptocurrencies an official means of payment for civil penalties, fines, taxes, and other fees.
Another Crypto Step for New York State
The lawmakers pointed out the volatile nature of the cryptocurrency market, outlining that the court might require further guarantees if the valuation of stablecoins dropped over 50% from the value when bail was posted.
“If the court directs that bail be posted as provided in paragraph (j) of subdivision of this section and the value of the stablecoins falls more than fifty percent from the value of the stablecoins at the time bail was posted, the court may in its discretion, request the posting of additional bail as provided in subdivision one of this section,” the bill reads.
The Previous Bills
The legislation classifies crypto assets as “any form of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”