Illinois Governor J.B. Pritzker has signed a $55.9 billion state budget that includes a new tax on digital asset transactions. Starting January 1, 2027, brokers will be required to charge a 0.2% fee on the value of exchanges, transfers, storage, and other transactions involving digital assets for clients in the state.
The measure has faced opposition from the Crypto Council for Innovation, the Digital Chamber, and Miles Jennings, head of legal at a16z Crypto. They argue that the tax singles out cryptocurrencies as a separate category and imposes a regulatory framework on digital asset users that does not apply to transactions involving stocks, bonds, or derivatives.
According to BDO USA, the tax could also affect companies outside Illinois if their annual revenue from clients in the state exceeds $100,000. Authorities expect that the entire package of tax measures will generate over $800 million in additional revenue in the 2027 fiscal year.