CFTC Chairman calls Illinois crypto tax a 'sin tax'

U.S. Commodity Futures Trading Commission (CFTC) Chairman Mike Selig has criticized the Illinois legislature, stating on X that it is "jeopardizing Chicago's future as a financial market hub" by imposing a so-called "sin tax" on blockchain technology. He argued that the relevant bill taxes cryptocurrency asset transfers even when no economic gain occurs. According to Selig, this reduces Illinois residents to needing government permission to hold property rather than being holders of property rights. He added that as blockchain technology transforms financial markets, the choice to tax wallets instead of fostering the crypto industry could symbolize the long-term decline of Chicago's financial market. The criticism follows Illinois Governor JB Pritzker signing the Digital Asset Privilege Tax Act, which imposes a 0.2% tax on crypto transactions and has sparked industry backlash.