New York Legislator Proposes Stablecoins for Bail Payments

The bill was introduced in the NY State Assembly on May 10

share

A new bill has the potential to expand the options for payment of bail in New York State.

The Democratic bill aims to authorize stablecoins as bail payments and directs key officials — the commissioner of taxation and finance and the director of the office of information technology services — to collaborate on creating rules and regulations. 

New York Assembly Bill 7024, introduced on May 10 by Assembly Member Latrice Walker, seeks to establish rules which will identify acceptable forms of fiat-collateralized stablecoins for posting bail and establish a comprehensive system for efficiently administering the acceptance, recording and processing of stablecoins as a means of securing bail.

Walker, who serves New York’s 55th district in Brooklyn, has been active in criminal justice reform and has been a member of the NY State Assembly since 2015.

Fiat-collateralized stablecoins are cryptocurrencies backed by traditional fiat currencies, such as the US dollar or euro. They are meant to maintain a stable value by holding fiat currency reserves in a bank account, ensuring each stablecoin is worth a set amount of regular cash.

Paying bail bonds in New York currently can be done through methods including cash, insurance bonds and credit cards. However, the new bill aims to make things more modern, by allowing payment in fiat-collateralized stablecoins.

The bill does not specify which stablecoins will be accepted.

While the provision would allow the use of stablecoins for bail, it doesn’t require insurance companies to accept stablecoins or any other crypto for posting bonds.

In cases where the court permits bail payments with stablecoins, if their value drops by more than 50% since the date bail was posted, the court can request additional bail, according to the bill.

To become law, the bill will have to pass through committee votes in both the State Assembly and Senate, then be approved by the full membership of both chambers, and finally signed by Governor Kathleen Hochul.

The proposed legislation comes after New York State Attorney General Letitia James revealed plans for another bill aiming to enhance regulations for crypto companies. It entails three key components: mandatory audits, submission of financial statements and improved fraud protection.

Further, the bill introduces stricter guidelines for custody and lending practices, ensuring thorough scrutiny of companies involved in asset management and leveraged trading.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone

Research

Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.

/

article-image

Kenya’s central bank doesn’t seem enamored by the idea of a CBDC but hasn’t slammed the door shut yet

article-image

Both Ethereum and Solana have enjoyed vibrant DeFi environments, but this has not yet been the case for Cosmos

article-image

As Japan takes important step forward on stablecoins, industry participants say, proposed US laws around such crypto assets remain in flux

article-image

Stablecoins offer global financial access and on-chain transactions without limitations, while FedNow falls short in terms of utility, global reach and inclusivity

article-image

Connext wants to make using layer-2s and layer-3s a seamless experience

article-image

GameStop has been dabbling in Web3 initiatives since at least January 2022