TLDR
- CFTC Chair Michael Selig criticized Illinois for approving a 0.2% tax on crypto transactions.
- Selig said Illinois lawmakers “decided they know better” than federal officials working on crypto rules.
- The Illinois crypto tax will take effect in January 2027 under the Digital Asset Tax Act.
- Industry groups have criticized the measure and questioned how the state will enforce it.
- The dispute comes as Washington works on broader crypto market structure legislation.
CFTC Chair Michael Selig attacked the Illinois crypto tax and accused state lawmakers of rejecting federal direction. He said Illinois risks weakening blockchain innovation and future digital asset activity. The Illinois crypto tax starts in January 2027.
Selig Criticizes State Crypto Move
Selig said Illinois lawmakers “decided they know better” than officials shaping federal crypto rules. He made the remarks in a Washington Times op-ed. He also said the Illinois crypto tax places residents at a disadvantage.
He compared blockchain growth with the internet’s effect on information sharing. He said tokenized assets could cover commodities, currencies, stocks, and bonds. Therefore, he argued Illinois “slammed the brakes on technological progress.”
Illinois Tax Draws Industry Pushback
Governor JB Pritzker signed the Digital Asset Tax Act during FY2027 budget planning. The law adds a 0.2% charge on crypto transactions. As a result, the Illinois crypto tax has drawn strong industry criticism.
Some industry groups called the Illinois crypto tax highly punitive. They also raised questions about implementation across exchanges, brokers, and users. However, state officials tied the Illinois crypto tax to broader budget needs.
Federal Debate Shapes Wider Response
Selig said Washington has worked for years to bring clarity to crypto markets. He argued that Illinois moved away from that national process. Consequently, he framed the Illinois crypto tax as a state-level policy break.
The CFTC continues to clarify its position on crypto oversight. Congress also keeps working on broad market structure legislation. Meanwhile, the Illinois tax adds pressure to that federal debate.
Crypto firms now face another state rule before Congress completes national reforms. Selig’s criticism keeps the Illinois crypto tax in the policy spotlight. The Illinois crypto tax may also influence future state approaches and revenue debates. The measure now sits at the center of a regulatory dispute.
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