Illinois Enacts 0.2% Crypto Transaction Tax, Drawing Industry Backlash
Illinois Governor Pritzker has signed the Digital Asset Tax Act into law, imposing a 0.2% tax on crypto transactions in the state. Crypto industry lobbyists and representatives have pushed back strongly, with some characterizing it as among the most hostile crypto legislation in the United States.
Illinois Governor J.B. Pritzker has signed the Digital Asset Tax Act into law, introducing a 0.2% tax on cryptocurrency transactions conducted within the state. The legislation marks one of the most direct state-level tax impositions on digital asset activity seen in the United States to date.
Crypto industry lobbyists and advocacy groups have responded with sharp criticism, with some describing it as one of the most anti-crypto laws passed by any U.S. state. Representatives from across the industry have voiced concern that the tax could drive digital asset businesses and users out of Illinois.
While the law is broad and applies to crypto assets generally, XRP holders and Ripple-adjacent businesses operating in Illinois could face direct cost implications for on-chain or exchange-based transactions. The development is relevant to the broader regulatory environment shaping U.S. crypto adoption.
State-level crypto tax legislation of this nature is relatively rare, and its passage may set a precedent that other states consider. The industry response will likely focus on legal challenges or legislative repeal efforts in the coming months.
Key facts
- •Illinois Governor Pritzker signed the Digital Asset Tax Act into law
- •The law imposes a 0.2% tax on cryptocurrency transactions
- •Crypto industry lobbyists have spoken out against the legislation
- •Some in the industry are calling it one of the most anti-crypto laws in the U.S.
- •The law is referred to as the Digital Asset Tax Act