Illinois approves crypto transfer tax

3 min read

Illinois approved a proposal to charge a 0.2% tax on certain crypto asset transfers regardless of whether transactions generate realized profit, a measure that CFTC chair Mike Selig criticized as a "sin tax" on blockchain technology. Selig warned the tax could undermine Chicago's historical role in financial innovation and noted that equivalent non-crypto transfers would not face similar treatment. The debate comes as federal lawmakers consider the CLARITY Act to create a regulatory framework for crypto, meaning the measure could spur wider policy conflict and affect adoption of tokenized assets across markets.

Illinois will charge 0.2% on certain crypto asset transfers