Illinois Approves 0.2% Tax on Crypto Transactions Despite Industry Opposition

Illinois Governor JB Pritzker has signed the state's $55.9 billion budget bill into law, approving a 0.2% "privilege tax" on digital asset transactions involving Illinois residents. The measure applies to transactions conducted on registered digital asset platforms, regardless of whether users generate profits.

Crypto industry groups, including the Crypto Council for Innovation and the Digital Chamber, opposed the legislation, arguing that Illinois is the first U.S. state to tax digital asset transactions based solely on the technology used rather than on investment gains or income. Digital asset brokers operating in the state are now required to register and comply with enhanced reporting requirements.