Crypto industry opposes new Illinois transaction tax

The Crypto Council for Innovation (CCI) is urging Illinois Governor JB Pritzker to veto the recently signed Digital Asset Privilege Tax Act, which imposes a 0.2% tax on cryptocurrency transactions. In a letter sent to the governor on June 16, the CCI described the measure as "the most punitive digital asset tax in the United States." The council pointed out that the tax is levied on the act of using crypto—including transactions, transfers, and custody—rather than on income, gains, or profits, and noted there is no exemption for transfers between a user's own accounts. The CCI also highlighted that Illinois is the first U.S. state to introduce a transaction-based crypto tax, warning that the move could stifle crypto adoption and investment and drive developers and innovative firms to other states.