What states can still do to crypto after GENIUS and CLARITY
Illinois became the first state to tax crypto transactions directly, imposing a 0.2% levy on nearly all trades, transfers, and custody services involving Illinois residents starting Jan. 1, 2027. The tax applies to the gross value of covered transactions, including out-of-state brokers serving Illinois users, though direct wallet-to-wallet transfers are exempt. This comes as Washington moves toward a national crypto rulebook through the GENIUS Act for stablecoins and the CLARITY Act for market structure. Those federal bills aim to standardize definitions, oversight, and registration nationwide, but they do not clearly preempt state taxes. The key point is that federal regulation and state taxation are separate issues: Congress may decide what crypto is and who oversees it, while states can still charge for its use unless federal law explicitly bars that. Illinois shows that even if crypto becomes legal and uniformly regulated nationwide, states can still raise its cost locally.
