Crypto industry aghast at Illinois' new tax on holding or transferring digital assets in state budget

PolicyCrypto industry aghast at Illinois' new tax on holding or transferring digital assets in state budgetThe 0.2% tax on any business activity involving digital assets was added last-minute, and is unlikely to change, two people familiar with the matter said. By Nikhilesh De|Edited by Jesse Hamilton Jun 17, 2026, 4:50 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowIllinois Governor J.B. Pritzker approved the legislature's $56 billion budget, which includes a new 0.2% tax on digital asset business activity.Any business exchanging, storing or transferring digital assets for Illinois residents will be responsible for reporting this tax, according to the legislation.The tax was added last-minute, two people familiar with the situation said, and the legislature is now out of session for the year.The crypto industry is pushing back against a new tax law in the state of Illinois that enacts a 0.2% tax on businesses transacting or storing crypto for customers in the state, but it may be too late to change it in the short-term.The law enacts a 0.2% tax on "receiving any digital asset business activity," according to the text of the bill, which defined digital asset business activity as "any single occurrence of exchanging, transferring or storing a digital asset as part of a business or on behalf of a customer."The tax applies to firms that are based in Illinois or provide services to residents of the state with total gross receipts of at least $100,000. The tax is expected to raise around $60 million, said a person following the process.The provision was added last-minute to Illinois' broader budget bill, according to two people following the matter, and was approved by Governor J.B. Pritzker on June 16, according to the bill's status page. The legislation creates a roughly $56 billion budget for the 2027 fiscal year and also includes new taxes on fantasy sports, social media and other…

Crypto industry aghast at Illinois' new tax on holding or transferring digital assets in state budget

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