{"id":17610,"date":"2026-06-18T12:06:12","date_gmt":"2026-06-18T19:06:12","guid":{"rendered":"https:\/\/jasonsblog.ddns.net\/?p=17610"},"modified":"2026-06-18T12:06:12","modified_gmt":"2026-06-18T19:06:12","slug":"illinois-governor-approves-crypto-transaction-tax-despite-industry-uproar","status":"publish","type":"post","link":"https:\/\/jasonsblog.ddns.net\/index.php\/2026\/06\/18\/illinois-governor-approves-crypto-transaction-tax-despite-industry-uproar\/","title":{"rendered":"Illinois Governor Approves Crypto Transaction Tax Despite Industry Uproar"},"content":{"rendered":"\n

As has been reported, this would apply to any transaction. So just moving crypto from your wallet to another one would incur the .2% tax. At the moment your only tax you would have to pay with cryptocurrency is capital gains, or tax on how much it has increased in value if it brings your income over a certain amount (if held less than a year it’s considered income tax). Since crypto is money, a means of exchange, it should be excluded from capital gains. We’ll have to see if blue states pursue this transaction fee tax and if they’ll exclude it from capital gains. Consequently, they want you to keep your money in fiat which they devalue, along with stocks and bonds which bubble and pop on you extracting wealth…<\/p>\n\n\n\n

https:\/\/cointelegraph.com\/news\/crypto-advocates-execs-push-back-on-illinois-transaction-tax<\/a><\/p>\n\n\n

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\u201cThere is effectively no comparable state financial transaction tax on stocks, bonds or derivatives anywhere in the country,\u201d said a16z general counsel Miles Jennings.<\/h5>\n\n\n\n
\"\"\/<\/figure>\n\n\n\n

Illinois is going ahead with a 0.2% “privilege tax” on crypto transactions involving its residents under a new $55.9 billion state budget bill signed Tuesday.<\/p>\n\n\n\n

Governor JB Pritzker signed the measure despite opposition from crypto industry groups over the provision, a transaction tax that applies to all digital asset transactions on any registered platform under broadly termed \u201cdigital asset business activity.\u201d<\/p>\n\n\n\n

\u201cThis will create an unprecedented tax regime that disproportionately burdens Illinois residents for simply using digital assets and will drive innovation and builders out of the state,\u201d the Crypto Council for Innovation said<\/a>, as it urged a \u201cline-item veto\u201d of Article 3 of Senate Bill 3019 on Tuesday.<\/p>\n\n\n\n

Illinois is home to several well-known crypto companies, including Zero Hash, Jump Crypto, Bitnomial, and Apex Crypto. The wide-reaching digital asset tax could also impact out-of-state companies if they have sufficient customer activity in the state, according<\/a> to US tax firm BDO USA.<\/p>\n\n\n\n

The measure, which takes effect on Jan. 1, 2027, will also make Illinois the only state<\/a> to tax digital asset users regardless of income, gains or profits, unlike traditional tax structures. Digital asset brokers operating in the state are also required to register and comply with new reporting obligations. <\/p>\n\n\n\n

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Letter from the CCI to Governor JB Pritzker. Source: <\/em>CCI<\/em><\/a><\/figcaption><\/figure>\n\n\n\n

Akin to taxing email rather than post<\/h2>\n\n\n\n

The CCI argued the tax would single out digital assets simply based on the technology used to process them. <\/p>\n\n\n\n

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\u201cTaxing a transaction based on the medium through which it happens to occur on a blockchain is akin to taxing correspondence because it is delivered by email rather than by post.\u201d<\/p>\n<\/blockquote>\n\n\n\n

They also said the timing is poor, since the industry is already adjusting to the federal Digital Assets and Consumer Protection Act (DACPA) and Congress is separately working on a national tax framework for crypto assets.<\/p>\n\n\n\n

The Digital Chamber sent a similar letter<\/a> opposing the Digital Asset Privilege Tax Act on June 3 with similar arguments.  <\/p>\n\n\n\n

\u201cThe tax will discourage the use of digital assets at the very time when financial services are moving to the blockchain, freezing Illinois residents out of progress and innovation and pushing the existing IL blockchain and crypto companies out of the state,\u201d it read. <\/p>\n\n\n\n

Crypto is being singled out<\/h2>\n\n\n\n

Miles Jennings, head of policy and general counsel for a16z Crypto, said<\/a> on X on Wednesday that it was one of the most anti-crypto laws in the US.<\/p>\n\n\n\n

\u201cThere is effectively no comparable state financial transaction tax on stocks, bonds or derivatives anywhere in the country,\u201d he said. \u201cThat means crypto is being singled out in violation of several federal laws.\u201d<\/p>\n\n\n\n

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\u201cRather than embracing innovation and the cost efficiencies blockchains can deliver for ordinary people in Illinois, the state is poised to punish its entrepreneurs and citizens that want to use crypto.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The crypto tax, which was bundled with registration and compliance requirements, is one piece of a much larger package built to close a budget gap. The bill is expected to raise more than $800 million in new tax revenue to support Pritzker\u2019s $55.9 billion budget for fiscal 2027. <\/p>\n","protected":false},"excerpt":{"rendered":"

As has been reported, this would apply to any transaction. So just moving crypto from your wallet to another one would incur the .2% tax. At the moment your only tax you would have to pay with cryptocurrency is capital gains, or tax on how much it has increased in value if it brings your […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,7],"tags":[],"class_list":["post-17610","post","type-post","status-publish","format-standard","hentry","category-tech","category-world"],"blocksy_meta":[],"featured_image_src":null,"author_info":{"display_name":"Jason","author_link":"https:\/\/jasonsblog.ddns.net\/index.php\/author\/jturning\/"},"_links":{"self":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/17610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/comments?post=17610"}],"version-history":[{"count":1,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/17610\/revisions"}],"predecessor-version":[{"id":17611,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/17610\/revisions\/17611"}],"wp:attachment":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/media?parent=17610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/categories?post=17610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/tags?post=17610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}