Some digital asset industry advocates oppose the $56 billion state budget provision passed by the Illinois General Assembly on Monday because of its impact on cryptocurrency users.
In the Senate bill attached as part of Illinois’ fiscal year 2027 budget, lawmakers proposed a 0.2% tax on cryptocurrency transactions to be imposed by a “digital asset broker making or consummating the sale of a digital asset business.” The 1,624-page bill, part of a revenue and tax package to fund the state’s 2027 budget, was passed early Monday morning along party lines.
Senate Bill 3019. Source: Illinois General Assembly
The measure, described as a “privilege tax” under the Digital Asset Tax Act amendment, included registration requirements for any entity acting as a digital asset broker in Illinois. Brokers who fail to comply with the January 1 guidelines could be found guilty of a Class 3 felony in the state and topic to a prison sentence of two to five years and a fine of up to $25,000.
The budget bill adopted by the state General Assembly on Monday still needs Governor JB Pritzker’s signature before it comes into force. Pritzker made several public statements signaling he planned to sign the bill soon, but had not done so as of Friday morning. Lawmakers expect the cryptocurrency tax to generate $60 million for the state.
Related: Ties to the cryptocurrency industry have been a major issue in Illinois
This cryptocurrency tax measure has sparked accusations from industry advocates of “burying” the rule in a massive budget proposal. Illinois Digital Chamber and Blockchain Association written on Wednesday he issued a letter calling on the state to reject the Digital Assets Privilege Tax Act, saying it would be “economically destructive” and has not notified the industry of his intentions.
“No other state has imposed a similar tax, and the lack of stakeholder engagement around this proposal raises serious concerns,” he added. he said Izba Cyfrowa in Thursday’s post
Source: Digital Chamber
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The cryptocurrency tax proposal in the Illinois budget comes after Pritzker signed an executive order banning state employees from placing bets on market event contracts with companies such as Kalshi and Polymarket. The order, signed on April 21, responded to concerns that elected officials could exploit the platforms “for personal enrichment and benefits based on access to nonpublic information.”
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