New York Assembly Bill 7024, introduced on May 10, addresses existing bail payment methods including cash, bonds, and credit cards. However, the legislator added stablecoins to the list of acceptable payment methods, specifically fiat-backed stablecoins.
Earlier on May 5, New York Attorney General Letitia James proposed a bill to tighten regulations on the cryptocurrency industry to protect investors, consumers and the economy in general. Several New York lawmakers have expressed support for this bill.
New York is one of the few US states with strict regulations on cryptocurrencies. In March, Letitia James sued the KuCoin cryptocurrency exchange for not having a license to operate in the US. Cryptocurrency companies operating here must be licensed by the New York State Department of Financial Services (NYDFS).
New York's stablecoin adoption could pave the way for other states to follow suit
According to TheCoinRepublic , the stablecoin market has been in decline for the past two years, with its capitalization accounting for just 11% of the total cryptocurrency market.
With 62% market share and 82 billion USDT in circulation, Tether remains the leader in the space. While Tether’s supply has steadily increased this year, its competitors are shrinking. Circle’s market share is declining, with the USDC stablecoin accounting for just 23% of the market and a circulating supply of 30 billion USDC. The SEC’s lawsuit against Paxos has caused Binance USD (BUSD) to decline in value, making it only 4.3% of the stablecoin market.
If the bill passes, fiat-backed stablecoins like USDT, USDC, and BUSD could be used to pay bail in New York.
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