Illinois governor signs 0.2% crypto transaction tax into law despite industry backlash

Illinois Governor JB Pritzker signed a 0.2% "privilege tax" on crypto transactions, making Illinois the only US state to tax digital asset usage regardless of profit. Industry groups warn it will drive innovation out of the state.

• The 0.2% tax applies to all digital asset transactions on registered platforms, effective Jan 1, 2027.
• Crypto Council for Innovation called it 'unprecedented' and urged a line-item veto, comparing it to taxing email instead of postal mail.
• a16z general counsel Miles Jennings said there is no comparable state tax on stocks, bonds or derivatives anywhere in the US.
• The tax is bundled into a $55.9 billion state budget bill and applies regardless of income, gains or profits from the transaction.
• Illinois-based crypto firms like Zero Hash, Jump Crypto and Bitnomial could be directly affected.

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