Illinois governor approves crypto transaction tax despite industry uproar
Illinois Gov. JB Pritzker signed a $55.9 billion state budget that includes a 0.2% “privilege tax” on cryptocurrency transactions. The tax applies to digital asset transactions on registered platforms and is paired with new broker registration and reporting requirements. Crypto industry groups, including the Crypto Council for Innovation and The Digital Chamber, urged a line-item veto, arguing the measure unfairly singles out digital assets, discourages innovation, and could drive businesses out of Illinois. Critics also said it could affect out-of-state firms with enough Illinois customer activity. Supporters of the industry view it as a rare state-level tax on crypto use, unlike conventional taxes tied to income or gains. The budget is designed to help close a gap and is expected to raise more than $800 million in new revenue for fiscal 2027.
